KFin Technologies gains on 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 for entering into 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 enterprises, including MSMEs, to utilize and monetize their own data to enhance participation in the economy through efficient digital financial relationships.

Their initial products are, as a technology service provider (TSP), a data gateway "MoneyOne FinPro and "MoneyOne FinShare, to provide a platform for enabling data sharing, data governance and analysis, 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 recorded a turnover of Rs 21.05 lakh.

KFin Technologies has entered into definitive agreements for subscribing to 1,041,525 equity shares of FPSIPL for a consideration of Rs. 6.50 crore translating into an equity shareholding of 25.63% of the post-issue share capital of FPSIPL. This initial primary transaction is expected to be completed within a period of 1 to 2 months.

After this investment, KFin Technologies will own 25.63% of the post-issue equity share capital of FPSIPL. KFintech can acquire additional equity share capital of FPSIPL, taking its aggregate shareholding in FPSIPL to 75.01%, subject to the satisfaction of customary closing conditions and receipt of regulatory 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. 22.60 crore.

The partnership will help KFintech venture into technical service provider (TSP) and account aggregators (AA) business as it looks to diversify beyond its current offerings across asset classes in the financial services ecosystem.

Sreekanth Nadella, managing director and chief executive officer of KFin Technologies, said, As a scaled multi-asset global solution provider for fund management, we are focusing on expanding our portfolio of products and solutions to foster the financialization of India's economy.

KFintech has an extensive reach of over 5000+ clients locally and globally being serviced through at-scale and innovative technology solutions.

Combined with the proven capabilities of the market leader in account aggregation - OneMoney, we are excited at the prospect to deliver several best in class fintech solutions across the sectors of lending, asset & wealth management, administration & onboarding solutions amongst several others.

KFin Technologies is a leading technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem including asset managers and corporate issuers across asset classes in India and provide several investor solutions including transaction origination and processing for mutual funds and private retirement schemes to asset managers in Malaysia, Philippines, Singapore, Hong Kong and Canada. In India, KFintech is the largest investor solutions provider to Indian mutual funds, based on number of AMCs serviced as on 31 December 2022, and the largest issuer solutions provider based on number of clients serviced, as on 31 December 2022.

The company reported 78.59% jump in consolidated net profit to Rs 53.38 crore on a 12.15% rise in sales to Rs 188.13 crore in Q3 FY23 over Q3 FY22.

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