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Financial technology company Findi Ltd (ASX:FND) has made a strategic acquisition of Indian money transfer services provider BankIT Services Pvt. Ltd – anticipating that it will deliver around 130,000 merchants across all states and territories within that country.
The acquisition – which was made for A$30 million – will facilitate the acceleration of Findi’s growth strategy by two years, providing it with around 25% its consolidated revenues from digital payments, post-completion.
Founded in 2010 by Amit Nigam – also founding executive of SpiceMoney – BankIT works on the premise of leveraging technology via an extensive Merchant network to deliver affordable and user-oriented finanical solutions to allow every Indian to manage their finances in a seamless and secure manner.
Mr Nigam aims to continue driving BankIT’s growth following the Findi acquisition. For the latter company, this deal will mean that Findi is now the only Pan-Indian ATM operator with a truly nationwide digital business.
Findi Executive Chairman Nicholas Smedley described the acquisition of BankIT as a transformational step change for Findi on its pathway to becoming an Indian payments bank.
“This acquisition is a gamechanger for Findi and positions us to play a pivotal role in India’s transition into digital banking over the next 5 to 10 years, further driving financial inclusivity and reshaping the financial landscape in India,” he said.
“While successfully building our flagship FindiPay digital platform, we have been pursuing acquisitions such as this to enhance the depth and breadth of FindiPay to position Findi for further strong growth.”
Findi shares moved up following this news, and by 16:20 AEDT, they were trading at $4.62 – a rise of 22.87% since the market opened.
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