New Anchors, New Shores: TFCI Expands its Investment Horizon

Tourism Finance Corporation of India (TFCI) has partnered with experienced industry players to launch Category-II Alternate Investment Funds (AIFs) focused on investments in hotels and real estate, signalling a strategic shift in its business model.

Traditionally recognised as a specialised lender to the tourism sector, TFCI is repositioning itself as a diversified non-banking financial company with an expanded financing and investment mandate. The proposed AIF platforms will undertake equity and structured investments in hospitality and real estate assets, drawing on the company’s deep sectoral expertise.

This initiative forms part of a broader strategy to reduce reliance on conventional term lending while increasing exposure across multiple asset classes. In parallel with AIF-led investments, TFCI plans to significantly scale up lending to sectors including real estate, social infrastructure, logistics, manufacturing, NBFCs, housing finance companies (HFCs) and asset reconstruction companies (ARCs). The company also intends to grow its offerings in loan-against-property products and financing backed by listed shares.

News by Rahul Yelligetti.