Polaris Financial Technology Ltd is planning to allocate $100 million (around Rs 549.25 crore as per today's currency rate) to acquire two to three product companies in next four years, as part of its new plans to double its current revenue within the period.
The company is looking at a new phase of growth, which it terms as Polaris 4.0, which would focus on doubling the current revenues in the next four years. As a part of this pursuit, the company would continue to identify its core assets that will contribute to fuel Polaris 4.0 growth. Inorganic growth strategy will play an important role, and be backed by rationalization of existing portfolio between core and non-core assets, said the senior company official.
In his address to the share holders in the 19th Annual General Meeting of the company, Arun Jain, chairman of Polaris Financial Technology Ltd said, "The company is planning to allocate $100million to acquire 2-3 product companies during the said period. It is also looking into identifying and divesting off of 'Non-Core Assets' from within this portfolio within the next 12months."
The company, in its earlier phases of growth, has focused on building up scale moving from big projects to bigger projects and later building comprehensive range of Intellectual Property in the Banking, Financial Services and Insurance (BFSI) space and building its product business from nothing to $100 million plus in five years.
With the changing times, the comany is planning to sustain its productivity by reducing the complexity. Beyond technical and process skills and expertise, the company would require creative professionals who would need to move from solution thinking to design thinking, he added.
The company has started the process through various initiatives including its collaboration with the Reserve Bank of India and other technology and service offerings including the cloud-based Financial Technology (FT) Grid.
"We are in the midst of changing gears - applying principles of Design Thinking to reduce complexity at Customer place resulting in Unprecedented Operational Productivity. The Big Dollar spends in next 3 years are going to come from simplifying technology," said Jain.
The company would fund the acquisitions thyrough contribution of leverage and the cash flows, said Natarajan Narayanaswamy, chief financial officer of Polaris Financial Technology Ltd. He did not comment on any fund raising plans in future.
The company would be expanding its service offerings in its FT Grid from current core banking services to other segments in near future, he added.
