Axis Finance Limited (AFL), a non-banking financial company and wholly owned subsidiary of Axis Bank, has raised $79.6 million (Rs 750 crore) in primary capital from Kedaara Capital through a preferential issuance. This is in addition to the Rs 1,500 crore it had raised via a rights issue approved by its board of directors on April 17, 2026.
The deal marks AFL’s largest primary capital raise so far and its first funding from an external investor, per a company statement.
The transaction is expected to strengthen the company’s capital base and support its next phase of growth while helping expand credit access across India. Following the infusion, AFL’s Tier 1 capital and capital adequacy ratio (CRAR) will improve.
“This significant boost to our capital base gives us the firepower to accelerate growth in a targeted and prudent way. As India’s credit markets continue to deepen, the company’s well capitalised position will be pivotal in serving specialised credit needs of our customer segments responsibly,” said Sai Giridhar, MD & CEO, Axis Finance.
Kedaara Capital’s investment is subject to standard regulatory approvals.
Morgan Stanley and Axis Capital were financial advisors, while Cyril Amarchand Mangaldas was the legal advisor to AFL on the transaction. Meanwhile, Veritas Legal was legal advisor to Kedaara Capital on the preferential issuance.
