Creation Investments Announces Strategic Exit with Sale of Sonata Finance to Kotak Mahindra Bank

CHICAGO, April 24, 2024 /PRNewswire/ -- Creation Investments Capital Management, LLC (Creation Investments or Creation), a leading global impact investment manager in emerging markets, today announced its latest strategic exit with the sale of Sonata Finance Pvt. Ltd. (Sonata) to Kotak Mahindra Bank, headquartered in Mumbai.

Focused exclusively on microfinance, Sonata provides women in North India with critical access to capital. Since Creation's initial investment, Sonata's client base has grown by ninefold and now serves over one million female entrepreneurs. In line with Creation's core investment thesis, the sale will provide Sonata's clients greater access to other financial products, including savings and insurance.

In the last 12 months, Creation has exited seven of its investments, including private equity and private credit strategies. Sonata is Creation's fifth Microfinance non-banking finance company (NBFC) exit in India within the same period, following the initial public offering of Fusion and Muthoot and the successful repayment of loans from Sinduja and Spandana. Creation also fully exited Commercial Credit and Finance in Sri Lanka in late 2023 and TBC Bank in the first quarter of 2024. These seven companies collectively serve more than 11 million underbanked people with over $10 billion in loans outstanding.

"We are pleased to see another one of our regulated Microfinance NBFCs reach an exciting point in its journey," said Patrick Fisher, founder and managing partner of Creation Investments. "We are thrilled to have found a mission-aligned, strategic buyer who will bring additional resources toward our goal of serving the unbanked in India."

Sonata continues to make significant strides in increasing access to capital for those at the bottom of the economic pyramid, mirroring the success of Creation's other portfolio companies like Fusion Microfinance and Muthoot Microfin. With its approach and commitment to financial inclusion, Sonata has expanded its reach and impact, providing essential financial services to underserved communities. As a part of Creation's microfinance portfolio, Sonata's trajectory underscores Creation's dedication to supporting microfinance efforts that make a difference in people's lives and contribute to building resilient economies.

From offices in Chicago, Dallas, Mexico City, and Bangalore, Creation Investments manages $2.2 billion in assets. Since its inception in 2007, Creation has invested in 31 portfolio companies across eight countries. It focuses on financial services and inclusion for unbanked and underbanked populations in emerging markets.

About Sonata Finance
Sonata Finance Private Limited is a Microfinance company registered as NBFC-MFI (Non-Deposit taking) Non-Banking Finance Company with the Reserve Bank of India, with its registered office in Lucknow. Established in January 2006, the company is engaged in financial inclusion and economic empowerment of women and underprivileged sections of society. The company is a renowned microfinance player in North India, with operations across 130 districts in nine states, Uttar Pradesh, Madhya Pradesh, Jharkhand, Maharashtra, Uttarakhand, Punjab, Haryana, Bihar and Rajasthan. To learn more, visit www.sonataindia.com.

About Creation Investments
Creation Investments Capital Management, LLC is a leading global impact investment manager in emerging markets. Creation Investments seeks out the next generation of financial services firms focused on increasing access to capital and providing financial products to the unbanked and underbanked in emerging markets. The firm aims to improve the lives of those living at the bottom of the economic pyramid, reducing poverty and its ill effects in the developing world through market-based solutions. Creation Investments is headquartered in Chicago and has offices in Bangalore, Dallas, and Mexico City. As of Dec. 31, 2023, Creation Investments had $2.2 billion in assets under management. To learn more, visit www.creationinvestments.com.

About Kotak Mahindra Bank
Established in 1985, Kotak Mahindra Group is one of India's leading financial services conglomerates. In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group's flagship company, received banking license from the Reserve Bank of India (RBI), becoming the first non-banking finance company in India to convert into a bank - Kotak Mahindra Bank Limited. The premise of Kotak Mahindra Group's business model is concentrated India, diversified financial services. The bold vision that underscores the Group's growth is an inclusive one, with a host of products and services designed to address the needs of the unbanked and insufficiently banked. To learn more, visit https://www.kotak.com/.

Statements are made as of the date of this release, and there is no implication that the information contained herein is correct as of any time after such date.

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SOURCE Creation Investments Capital Management, LLC