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| FINO aims to raise Rs 100 crore |
| Namrata Acharya / Kolkata Feb 24, 2009, 00:32 IST |
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Financial Information Network and Operations (FINO), promoted jointly by various public and private sector banks for providing banking services through biometric cards, is planning to raise Rs 100 crore through debt and equity for capital expenditure in the next two-three years.
Rishi Gupta, its chief financial officer and president (sales and marketing), said FINO was in talks with banks and financial institutions for equity participation.
"We are thinking of raising funds to the tune of Rs 100 crore through long term debt and equity," said Gupta.
Recently, about ten companies had raised $15 million for FINO, which has a paid-up capital of Rs 65 crore, to support its expansion plans.
At present, international investors hold a 40 per cent stake, and private and public sector entities each hold 30 per cent stake in FINO.
The international investors at FINO include The International Finance Corporation, Intel Capital and Legatum.
The public sector entities include Union Bank of India, Corporation Bank, Life Insurance Corporation of India and Indian Bank. The domestic private investors in the company are The Institute for Financial Management and Research (IFMR), ICICI Lombard General Insurance Company Limited and ICICI Bank Limited, which holds about 20 per cent stake in the company.
FINO is also planning to introduce money transfer through biometric-enabled smart cards by January next year.
Till now, FINO has issued about 2.7 million smart cards, and by the end of this fiscal, it plans to reach five-million mark.
Apart from tie-ups with about ten banks for offering various financial services, FINO also offers remittance through smart cards under National Rural Employment Guarantee programme and pension payment in some states .
Interestingly, smart cards, designed mainly for the un-banked population in the rural areas, has extended its network in urban conglomerates as well.
FINO claimed it had a customer base of about 70,000 in Mumbai, and more than a lakh in Delhi.
"The market for smart cards is expanding, with the product selling not only in the rural area, but in urban areas as well," said Gupta.
FINO provides services to banks, microfinance institutions, insurance companies and government entities by linking clients to them, with the basic principal of door step delivery to rural customers.
It has enrolled more than 20 lakh customers across the country through tie-up with ten banks, 20 MFI and four government entities in 15 states of India.
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