Core Viewpoint - Mizuho Financial Group is finalizing the acquisition of KKR-backed Avendus Capital at a valuation of ₹5,900 crore, marking a significant investment in India and highlighting the growing interest of Japanese financial institutions in the Indian market [1][19]. Transaction Details - The transaction will result in Mizuho owning 65-70% of Avendus, with KKR exiting its entire 58% stake. Gaja Capital will retain its 7% shareholding, while co-founders Gaurav Deepak and Kaushal Aggarwal will maintain a combined 12% stake and operational control, although Mizuho will have veto rights and four board seats [2][19]. - This acquisition is noted as Mizuho's largest investment in India, emphasizing the strategic interest of Japanese financial groups in the region [6][19]. Historical Context - KKR initially acquired a controlling stake in Avendus in 2015 for ₹950 crore-1,000 crore and is expected to achieve a blended return of 3.5x in rupee terms over a nine-year period upon exit [8][19]. - Avendus was founded in 1999 and has diversified its investment banking practice beyond technology and internet sectors into consumer, financial services, industrials, and healthcare [11][13]. Financial Performance - Avendus reported a net profit of ₹170 crore for the nine months ending April 2025, an increase from ₹118 crore in FY24 and ₹138 crore in FY23. The firm is projected to achieve profits of ₹250-300 crore in FY26 [14][19]. - The investment banking division has shown strong performance in FY22 and FY23, although FY24 faced challenges due to extended deal completion timelines. A revival was noted in FY25, with nine-month revenue from investment banking surpassing the total revenue of FY24 [13][19]. Strategic Focus - Mizuho's CEO has indicated a commitment to supporting the growth of Indian and Japanese companies, viewing India as a crucial market for future opportunities [10][16]. - Mizuho has been expanding its wholesale banking franchise in India since 2015 and has made significant investments in local financial institutions, including a recent $145 million investment in a credit card issuer [17][18].