The Japanese bank Resona Bank announced on Monday a partnership with Tata Capital. The goal of this agreement is to provide the bank's clients with broader access to financial opportunities and solutions in India, utilizing the local non-banking lender network.
This announcement followed Resona Bank's investment of $20 million. The bank acted as a limited partner in the Tata Capital Growth Fund III LP, which is managed by Tata Capital and invests in Tata Capital Growth Fund III, according to an official statement. However, the Japanese lender did not disclose the timeline for this investment.
According to the Memorandum of Understanding (MoU) released on Monday, both companies intend to leverage their strengths in the Indian market. It was clarified that this is a non-exclusive collaboration, through which opportunities will be explored via the Tata Capital network.
The Japanese partner will rely on the local presence and experience of the Indian partner in the financial services sector to support its clients who are considering opportunities in India. Rajiv Sabharwal, Managing Director and CEO of Tata Capital, noted that this cooperation combines Tata Capital's deep understanding of the Indian market with Resona Bank's strong ties to Japanese business.
He also added that the Tata Capital Growth Fund III has a proven track record of value creation and will support companies aiming to capitalize on India's growth. Mamoru Saito, Executive Officer of Resona Bank, emphasized that India represents a strong market demonstrating exponential growth and is becoming increasingly significant for Japanese companies in the manufacturing, sales, procurement, and R&D sectors.