Choice International Limited — Important, 12-02-2025: Updates

Choice International Limited continues to expand its footprint in the financial services sector through the acquisition of retail lending businesses from Paisabuddy Finance Private Limited and Sureworth Financial Services Private Limited, both executed via slump sale.

**Financial Highlights:** Choice Finserv has acquired the retail lending business of Paisabuddy, which reported a turnover of ₹47.45 Cr and a net worth of ₹76.36 Cr as of March 31, 2024. In addition, the acquisition of Sureworth adds a turnover of ₹4.29 Cr and a net worth of ₹1.45 Cr to their portfolio.

**Strategic Initiatives and Growth Drivers:** The acquisitions aim to enhance Choice Finserv's assets under management (AUM) by ₹276.20 Cr from Paisabuddy and ₹68.79 Cr from Sureworth. These moves align with the company's commitment to sustainable finance initiatives, including funding for solar projects and electric vehicles.

**Business Developments:** Both acquisitions are expected to close by December 31, 2024, with total consideration for Paisabuddy at ₹165.19 Cr and for Sureworth at ₹5.99 Cr, partially in cash and partially in shares.

**Market Position and Competitive Advantage:** The ventures into MSME lending and affordable housing will strengthen Choice Finserv's market position, particularly across underserved areas in Rajasthan, Gujarat, and Madhya Pradesh.

**Investor Implications:** These strategic acquisitions present a positive outlook for investors, indicating potential growth as Choice Finserv expands its operations and AUM in the retail lending sector.