Japan’s Resona Bank invests $20 million in Tata Capital fund, ties up with lender to deepen India access

Japan's Resona Bank has partnered with Tata Capital to provide its clients greater access to financing solutions and business opportunities in India, leveraging the non-bank lender's local network and financial services expertise.

The partnership follows Resona Bank's $20 million investment as a limited partner in Tata Capital Growth Fund III LP, which invests in Tata Capital Growth Fund III, a fund managed by Tata Capital, according to an official statement. The Japanese lender has not disclosed when the investment was made.

Resona to leverage Tata Capital's India network

Under a memorandum of understanding (MoU) announced on Monday, Tata Capital and Resona Bank will leverage their respective strengths in the Indian market. The non-exclusive collaboration will explore opportunities through Tata Capital's network, potentially supporting Japanese companies assessing investments, expansion and other business opportunities in India.

Resona Bank will use Tata Capital's local presence and expertise in financial services to support its customers evaluating opportunities in the country, the statement said.

"This collaboration combines Tata Capital's deep understanding of the Indian market with Resona Bank's strong relationships with Japanese businesses," said Rajiv Sabharwal, MD & CEO, Tata Capital.

Sabharwal said Tata Capital Growth Fund III has a proven track record of value creation and will support companies looking to capitalise on India's growth story.

Japan Inc's India focus grows

The partnership comes as India gains increasing importance for Japanese companies across manufacturing, sales, procurement and research and development, according to Resona Bank.

"India is a strong market that has witnessed exponential growth and is increasingly becoming important to Japanese companies across manufacturing, sales, procurement, research and development," said Mamoru Saito, executive officer, Resona Bank.

The collaboration gives Resona Bank a local financial services partner as its Japanese corporate customers assess opportunities in India, while Tata Capital gains access to Resona's relationships with Japanese businesses.

Focus on financing and investment opportunities

The arrangement will cover financing solutions and other opportunities that emerge through Tata Capital's local network. As a non-exclusive partnership, both institutions can continue to pursue opportunities with other financial and business partners.

Resona's investment in Tata Capital Growth Fund III also gives the Japanese lender exposure to a fund managed by the Tata Capital platform, alongside the broader strategic collaboration.

The two institutions will explore opportunities based on their respective capabilities, with Tata Capital providing local market knowledge and Resona Bank leveraging its relationships with Japanese businesses seeking to expand their presence in India.