Helios Capital bullish on NBFCs, bets on consumption-led growth and last-mile finance

Helios Capital is sharpening its bullish stance on India’s financial services space, with CEO Dinshaw Irani making a clear case for non-banking financial companies as the real enablers of the country’s consumption cycle. The latest portfolio moves in the Helios Midcap Fund, including the addition of Poonawalla Fincorp and higher exposure to existing NBFC names, underline a strategy that is increasingly tilted toward last-mile lenders rather than traditional banks.

The NBFC thesis gets louder

Irani said the investment call is rooted in a structural view of how India’s growth is unfolding. “Consumption is going to be a big part of India growth story,” he said, adding that without NBFCs, “there won’t be any finances with the consumption.”

That framing is significant. Helios is effectively positioning NBFCs not merely as lenders, but as distribution engines for retail demand, especially in segments where formal banking channels may not be as agile. Irani went a step further, describing many of these firms as “more or less… probably FinTech players,” signalling a preference for lenders that combine credit delivery with technology-led reach.

Banks take a back seat

The sharper message from Helios is that its broader BFSI exposure is no longer bank-led. “We’ve increased our exposure” to the BFSI space, Irani said, but added that “banks are hardly a segment within that. It’s mainly the financial services.”

That marks a notable divergence from conventional financial-sector allocations, where banks typically dominate. Helios appears to be chasing faster-growth pockets within finance, particularly businesses tied to consumer credit, specialized lending and platform-led financial intermediation.

Why the market implication matters

The call also fits into Helios’ wider preference for mid- and small-cap opportunities over large-cap laggards. In the broader conversation, Irani highlighted stronger earnings momentum in midcaps and smallcaps, while arguing that large caps have been weighed down by slower-growing sectors.

Against that backdrop, NBFCs offer a cleaner play on domestic demand. If consumption remains resilient and credit penetration deepens, these firms could capture a disproportionate share of incremental growth. The addition of capital market exposure alongside NBFCs further suggests Helios is building a wider financial-services basket geared to rising retail participation and economic formalisation.

A forward-looking portfolio call

For Helios, this is not a tactical trade but a directional bet. “That’s what we’ve done, and I think, the way forward is this for us,” Irani said.

In a market still debating leadership beyond banks, Helios’ message is unambiguous: the next leg of India’s financialisation may be driven less by balance-sheet-heavy lenders and more by nimble, tech-enabled financial services players sitting closest to the consumer.