Edelweiss Financial Services says WestBridge Capital is acquiring 15% stake in Edelweiss Asset Management; check details

Edelweiss Mutual Fund (Edelweiss MF) is one of the key businesses for EFSL and currently manages ₹72,600 crore of equity AUM, which has grown by 53% over the last five years, the company said in its press release.

Edelweiss MF had a profit after tax of ₹53 crore for FY25. The current transaction values the business at 57x P/E, which aligns with industry benchmarks of 30x to 60x. This transaction is beneficial for all stakeholders and comes at an opportune time for Edelweiss MF as it now shifts into the next phase of growth, the press release added.

The news was shared by Radhika Gupta, the MD & CEO of Edelweiss Group, on the social media platform X.

For EFSL, this transaction underscores the objective of value creation and the value unlock journey in the MF business; for Edelweiss MF, it strengthens the growth trajectory and the path to being an institutionalised independent business; and for WestBridge, it marks a strategic entry into a high-growth, well-governed MF business with proven leadership and scale potential, the press release said further.

At the time of writing this report, shares of Edelweiss Financial Services were trading at ₹94.82, down over 2%.

WestBridge Capital is a global investment firm with over $7 billion in assets under management.

Edelweiss MF is one of India’s fastest-growing AMCs. The company has reached a total AUM of ₹1,52,200 crore as of June 30, 2025, reflecting a 44% CAGR over the last five years. Edelweiss MF reported a PAT of ₹28 crore for the first quarter of FY26—"demonstrating strong momentum and improved operating leverage."

What the companies' management said

Rashesh Shah, Chairman & MD, EFSL, said, “Welcoming WestBridge Capital as a strategic partner is a timely step in the value-creation journey at Edelweiss MF. We have built a robust, innovation-led mutual fund franchise with strong equity momentum. This transaction reflects the confidence in the long-term potential of our mutual fund business. It initiates the value unlock for EFSL, strengthens the growth path of Edelweiss MF, and brings in a seasoned long-term partner."

Deepak Ramineedi, Partner at WestBridge Capital, said, "We are extremely pleased to partner with Edelweiss Mutual Fund at this exciting stage of its growth journey. Under Radhika’s leadership, Edelweiss MF has demonstrated excellent execution with a sharp focus on innovation."

Ramineedi added, "We believe financialisation of savings is a massive industry tailwind and strongly believe Edelweiss MF is very well placed to benefit from the same. We look forward to supporting the team in scaling the business further."

Meanwhile, Radhika Gupta, MD & CEO, Edelweiss MF, said, “Edelweiss MF has scaled rapidly through focused execution – consistent fund performance, product innovation, and widening distribution strength. We are delighted to partner with WestBridge Capital – a like-minded and long-term partner – whose strategic insights and ecosystem will accelerate our next phase of growth."

Gupta added, "the mutual fund opportunity in India is just taking off, and we are confident that we can build Edelweiss MF into one of India's most admired asset managers.”