CashTech to invest $2.5m

Pune-based CashTech Solutions India Private Limited, a premier cash management solutions (CMS) provider, plans to invest close to $2.5 million into product and infrastructure development in the next 10 months.

Speaking to Business Standard, R N Iyer, managing director of CashTech Solutions India, said: "Out of the $2.5 million, $1.5 million would be invested in product development and the rest to improve infrastructure facilities."

The company was recently acquired by the $55-million Fundtech Limited, a leading provider of financial technology services in the US market.

"Despite being acquired by Fundtech, CashTech will continue to operate as an independent subsidiary and will continue to invest in its product line. Our strength in domain, technology and product development will be further enhanced by Fundtech's distribution capabilities and financial strength," Iyer said.

On the terms of the acquisition, Iyer said that the acquisition was for $7 million out of which $2.8 million has already been paid and the rest would be paid over the next seven years.

"With the addition of some of Fundtech's non-cash management products to our portfolio, we are looking forward to increase our sales activity in the Asia-Pacific region. Fundtech, with a strong presence in the US and Europe markets, will be able to address new customer segments with the addition of our product line," he said.

Iyer said that they were looking at bringing in a product in the area of cheque fraud called 'Positive Pay' and also bring in an anti-money laundering product 'AML-Suite'.

The company, which currently has a strength of 200 employees, is planning to ramp up its headcount to around 300. "We expect to increase our headcount to around 250 employees by the end of the current fiscal. By July-end, we expect to have a strength of 300 employees," he said.

CashTech achieved a turnover of of $3.8 million last fiscal with a profitability of around $1million. "We expect a 25-30 per cent growth in our topline this fiscal," Iyer said.

"At present, we have a clientele-base of 22 banks. We expect to close the current fiscal by taking our clientele-base to to 30 banks," he added.

CashTech has recently introduced a new product in channel finance, which helps small suppliers of corporate customers to have access to finance from banks. The company has also recently launched a product which would help non-resident Indians to remit money into India.