BENGALURU (Nov 12): India's Godrej Industries on Thursday said Temasek Holdings will invest 25 billion rupees (US$266.98 million) in Godrej Capital through its affiliate, valuing the financial services business at up to 280 billion rupees.

Godrej Industries will retain about 80% ownership following the deal.

Temasek's investment in Godrej Capital marks another bet on India's financial services sector. The Singapore state investor also holds a stake in ICICI Bank, the country's second-largest private-sector bank by market capitalisation.

The deal adds to a series of large transactions in India's financial services sector this year, including Fairfax Financial Holdings picking up a 60.7% stake in IDBI Bank and Bank of America entering a joint venture to buy 49.9% stake in Jio Credit, the lending arm of Jio Financial Services.

"Financial services represents a major long-term growth area of focus for our Group, and our ambition is to build Godrej Capital into a 1 trillion rupees AUM franchise by 2031," said Pirojsha Godrej, chairperson, Godrej Industries Group.

Founded in 2020, Godrej Capital operates in over 100 cities and had assets under management of 350 billion rupees, as of Oct 31, 2026.

The company, through its subsidiaries, serves businesses and individuals across the country with home loans, loans against property, working capital loans, construction finance, and personal loans, among others.

The investment comes after Godrej Industries said it plans to list the financial services arm in the next five years.

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