Daiwa Securities : Notice on Investment in Ambit Finvest Private Limited

26th March, 2024

Press Release

Daiwa Securities Group Inc.

Seiji Nakata, President and CEO

(Securities Code: 8601 TSE Prime and NSE Premiere)

Notice on Investment in Ambit Finvest Private Limited

We, Daiwa Securities Group Inc. ("Daiwa"), are proud to announce that we have resolved upon the board that we will invest approximately INR 4.15 billion (approximately JPY 7.5 billion; equivalent to 15% equity stake) in Ambit Finvest Private Limited ("Ambit Finvest"). Dated on 26th March, 2024, we have signed the definitive agreements with regard to this investment. Ambit Finvest, directed by Mr. Sanjay Agarwal, CEO, is a non-banking financial company ("NBFC") headquartered in Mumbai, India, that provides lending services to micro, small and medium enterprises. Additionally, we acquired a minority stake in Ambit Private Limited ("Ambit" together with its group subsidiaries etc. "Ambit Group"), the parent company of Ambit Finvest, in May 2023, and appointed an officer to the board of directors of Ambit Finvest.

This investment does not fall under the timely disclosure standards set by the Financial Instruments Exchange for Daiwa.

Ambit Finvest is a NBFC licensed by the Reserve Bank of India. With a network of over 165+ branches across the nation, Ambit Finvest provides secured and unsecured business loans as well as used vehicle loans to small and medium-sized enterprises and their owners. Under the leadership of an experienced management team, Ambit Finvest has achieved rapid growth in recent years by promoting digital transformation and leveraging its diversified geographical presence across India. Ambit Finvest has been playing a vital role in bridging the funding gap between demand and supply for small and medium-sized enterprises in India, a developing country,

We have committed to businesses in India as a group, and through this investment, we aim to seize the growth opportunities in the expanding Indian NBFC sector and contribute to the acceleration of financial inclusion. We have established a strong relationship with Ambit Group through capital and business alliance over the years. With this investment, we believe that we can support the further growth of Ambit Group and maximize the benefits from the growth of the Indian economy which is expected to prosper further.

Regarding this investment, Seiji Nakata, President and CEO of Daiwa made the following comments:

We see India as a strategically important country which is expected to experience high economic growth in the coming years. We have been conducting business in India through our long-term partnership with Ambit Group. With this new opportunity to invest in Ambit Finvest, which is developing its high-growth non-banking finance business, we believe there is potential for an expansion of our business operations in India.

Mr. Ashok Wadhwa, the Group CEO, Ambit made the following comments:

We are truly pleased to deepen our partnership with Daiwa. Despite being a major driver of the Indian economy, MSMEs need greater access to formal credit and Ambit Finvest has been working towards meeting their credit requirements. It is now at the cusp of a breakout in its business trajectory and we are delighted to invite Daiwa as a long-term strategic investor to participate in this journey".

＜Ambit Finvest Private Limited＞

Establishment	24th July, 2006
Location (Registered Office)	Ambit House, 449, Senapati Bapat Marg, Lower Parel, Mumbai, Maharashtra, India
Location (Corporate Office)	Kanakia Wall Street - 5th floor, A 506-510, Andheri-Kurla Road, Andheri East, Mumbai, Maharashtra, India
CEO, Ambit Finvest	Sanjay Agarwal
Main Business	Non-Banking Finance Company (MSME Lending)