Kedaara Capital, a private equity firm, has acquired a 5.08% stake in Axis Finance for ₹750 crore (approximately $90 million USD), marking the company's first external investment. The investment values Axis Finance at ₹14,764 crore (approximately $1.77 billion USD) and comes on the heels of a ₹1,500 crore rights issue approved by Axis Bank on April 17. This capital infusion is expected to significantly enhance Axis Finance's Tier 1 capital and capital adequacy ratio, which currently stands at 13.82%. The funds will not only support operational growth but also establish a valuation benchmark for future fundraising and a potential initial public offering (IPO). While there is no immediate plan for an IPO, regulatory requirements may necessitate one as Axis Finance's asset size continues to grow. The company reported a 19% increase in net profit for fiscal 2026, reaching ₹806 crore from ₹676 crore the previous year, with a stable net non-performing asset ratio of 0.36%.