KFin Technologies wins proposal to invest in Fintech Products and Solutions (India)
KFin Technologies rose 1.11% to Rs 295.30 after the company announced its plans to invest in Fintech products and solutions to enter the account aggregator business.
FinTech Products and Solutions India (FPSIPL), brand name MoneyOne, is in the business of providing technology solutions for the BFSI sector. It is focused on promoting data democracy to empower citizens and businesses, including MSMEs, to use and monetize their own data to increase participation in the economy through effective digital economic relationships.
Their first products are, as a Technology Service Provider (TSP), a data gateway “MoneyOne FinPro and “MoneyOne FinShare, to provide a platform to enable data sharing, data management and analytics, and related solutions to the clientele in the BFSI sector.
FPSIPL’s subsidiary, FinSec AA Solutions (FASPL), brand name OneMoney, is India’s first Account Aggregator (AA), with an NBFC AA license from the RBI. OneMoney, is a leading player in the market with over 45% market share in a competitive and emerging AA domain.
FPSIPL had registered a turnover of Rs 21.05 lakh.
KFin Technologies has entered into definitive agreements to subscribe for 1,041,525 equity shares in FPSIPL for a consideration of Rs. 6.50 crore is converted into a shareholding of 25.63% of the share capital of FPSIPL after the issue. This first primary transaction is expected to be completed within a period of 1 to 2 months.
Following this investment, KFin Technologies will own 25.63% of the share capital in FPSIPL after the issue. KFintech can acquire additional share capital in FPSIPL, and increase its total shareholding in FPSIPL to 75.01%, subject to the satisfaction of normal closing conditions and receipt of authority approvals.
This additional transaction is expected to be completed within a period of 2 to 3 months. Cash consideration for the additional transaction shall not exceed Rs. NOK 22.60 million.
The partnership will help KFintech tap into technical service providers (TSPs) and account aggregators (AAs) as it looks to diversify beyond its current offerings across asset classes in the financial services ecosystem.
Sreekanth Nadella, Managing Director and CEO of KFin Technologies said: As a global multi-asset solutions provider for fund management, we are focused on expanding our portfolio of products and solutions to advance the financialization of India’s economy.
KFintech has an extensive reach of over 5000+ customers locally and globally who are served through innovative technology solutions on a large scale.
Combined with the proven capabilities of the market leader in account aggregation – OneMoney, we are excited about the opportunity to deliver more best-in-class fintech solutions across the sectors of lending, asset and wealth management, administration and onboarding solutions among others.
KFin Technologies is a leading technology-driven financial services platform that provides comprehensive services and solutions to the capital markets ecosystem, including asset managers and corporate issuers across asset classes in India, and offers multiple investor solutions, including origination and processing of transactions for mutual funds and private pension schemes. managers in Malaysia, the Philippines, Singapore, Hong Kong and Canada. In India, KFintech is the largest investor solutions provider to Indian mutual funds, based on the number of AMCs served as of December 31, 2022, and the largest issuer solutions provider based on the number of clients served, as of December 31, 2022.
The company reported 78.59% jump in consolidated net profit at Rs 53.38 crore on a 12.15% increase in sales at Rs 188.13 crore in Q3 FY23 over Q3 FY22.
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