In a major move to solidify its presence in South Asia, Japan's Mizuho Securities announced a significant acquisition in the Indian financial sector. The firm will purchase a majority stake in the homegrown investment bank Avendus Capital, marking a strategic entry into India's bustling investment banking landscape.
The Deal Structure and Financials
On Wednesday, December 17, 2025, Mizuho Securities, a core part of Japan's third-largest banking group, Mizuho Financial Group, revealed its plan. The company will acquire between 61.6% and 78.3% of Avendus shares from the current majority owner, the US-based global investment firm KKR. The transaction is valued at up to 81 billion yen, which is approximately $523 million.
Upon completion, this acquisition will make Avendus a consolidated subsidiary of Mizuho. This deal underscores the growing interest of Japanese financial giants in the Indian economy, which presents a stark contrast to the demographic challenges they face domestically.
Strategic Rationale Behind the Move
During a press briefing in Tokyo, Mizuho's Chief Executive, Masahiro Kihara, explained the strategic thinking. He noted a consistent increase in queries from the bank's clients about expanding their operations into India. The acquisition is seen as a crucial piece to complete Mizuho's global investment banking puzzle.
"Better cross-regional collaboration has been one of the great things about the Greenhill acquisition," Kihara stated, referencing Mizuho's 2023 purchase of the US M&A advisor. "On the investment banking side, we thought India was a missing piece." The move is designed to strengthen Mizuho's ability to offer seamless services across different regions, leveraging Avendus's strong domestic network and expertise.
Growing Japanese Footprint in Indian Finance
This transaction is not an isolated event but part of a broader trend of Japanese financial institutions deepening their ties with India. Earlier in the year, Mizuho's larger rival, Sumitomo Mitsui Financial Group, acquired a 24.2% stake in Yes Bank, a prominent Indian private lender.
The Indian market, with its high-growth trajectory, young population, and expanding corporate sector, has become an attractive destination for Japanese firms contending with an ageing and shrinking population at home. For KKR, this exit represents a successful chapter, having first invested in Avendus back in 2016.
The entry of a heavyweight like Mizuho is expected to intensify competition in India's investment banking sector, while also providing Indian companies with enhanced access to Japanese capital and global networks. It signals strong international confidence in the long-term prospects of India's financial markets.
