On July 25, 1995, Goldman Sachs announced an equity joint venture in the form of a 28 percent stake in a new investment bank, Kotak Mahindra Capital, being formed by Kotak Mahindra Finance Ltd., a leading financial services company in India, with an option to increase its stake to 40 percent within three years. Goldman Sachs also acquired a similar stake in Kotak Securities, a Bombay Stock Exchange brokerage firm. The announcement came as Goldman Sachs sought to expand its footprint in emerging markets, mirroring the ongoing expansion and integration of global financial markets. 

The joint venture with Kotak Mahindra Finance Ltd. followed the opening of India’s stock markets to direct foreign investment just two years earlier. The deal was the result of three years of joint efforts in research and investment banking between the two firms on an informal basis.

The joint venture lasted until March 2006, when Kotak Mahindra bought out Goldman Sachs’ stake in both ventures for US$70 million as both banks sought to pursue independently the growing investment banking market in India. While this marked the end of the joint venture, the firm’s presence in India had already grown. The Bengaluru office opened in 2004, with Mumbai following in 2006. The firm also announced plans to invest as much as US$1 billion in India over the near term, primarily in private equity investments. By 2010, the firm had invested over US$2 billion in India.

This article was originally published as part of a series commemorating the 150th anniversary of Goldman Sachs' founding in 1869.