Edelweiss Mutual Fund (Edelweiss MF) has secured a significant strategic investment, with WestBridge Capital acquiring a 15% stake for Rs 450 crore. The development was announced by Edelweiss Financial Services Limited (EFSL) and marks a major milestone in the growth story of Edelweiss MF.
Radhika Gupta, MD & CEO of Edelweiss MF, shared the news on X, describing the deal as a “vote of confidence” in the company’s achievements and its ambitions for the future. “I am delighted to share that Westbridge Capital is acquiring a 15% stake in Edelweiss MF. This is a special milestone – a vote of confidence in both what we have built and the dreams we have for the future,” she 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 likeminded and long-term partner – whose strategic insights and ecosystem will accelerate our next phase of growth. 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,” she added.
Edelweiss’ growth
Edelweiss MF, one of the fastest-growing asset management companies (AMCs) in India, has been steadily building momentum over the past decade. The AMC now manages assets under management (AUM) of Rs 1,52,200 crore as of 30 June 2025, representing a 44% compound annual growth rate (CAGR) over five years.
Its equity AUM alone has reached Rs 72,600 crore, a 53% rise over the same period, reflecting strong investor confidence. In FY25, Edelweiss MF reported a profit after tax (PAT) of Rs 53 crore, with further improvement in Q1 FY26, when PAT reached Rs 28 crore.
Over the last decade, Edelweiss MF has moved from the 36th position to the 13th in the Indian mutual fund industry – evidence of its transformation into a credible, scaled and competitive player.
Long-term potential
Rashesh Shah, Chairman and Managing Director of EFSL, welcomed the deal as a “timely step” in the company’s value-creation journey. “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,” he said.
The deal values Edelweiss MF at 57x price-to-earnings (P/E), aligning with industry benchmarks of 30x to 60x. EFSL emphasised that the transaction benefits all stakeholders – from reinforcing Edelweiss MF’s institutional strength, to unlocking value for EFSL, while enabling WestBridge Capital to enter a high-growth, well-governed market segment.
WestBridge Capital’s strategic move
WestBridge Capital, a global investment firm managing over $7 billion in assets, has built a reputation for long-term investments across public and private markets. Known for its board-level engagement, governance support and hands-on partnerships, WestBridge has consistently backed transformative businesses over the past two decades.
Its decision to acquire a stake in Edelweiss MF reflects confidence in the Indian asset management industry, which is poised for sustained expansion as household participation in mutual funds continues to deepen.
The transaction remains subject to regulatory approvals from the Securities and Exchange Board of India (SEBI), the Competition Commission of India (CCI) and other customary clearances. Nomura Financial Advisory and Securities (India) acted as the exclusive financial advisor to EFSL. Legal advisory support was provided by Khaitan & Co. for EFSL and Edelweiss MF, and Trilegal for WestBridge Capital.