Online financial solutions provider 3i Infotech Consumer Services Limited (3icsl), a wholly-owned subsidiary of Mumbai-based IT company 3i Infotech Limited, is planning to acquire a consumer-based organisation in the domestic market for a consideration of $10 million (approximately Rs 47 crore).
“The acquisition will give us a larger consumer base to operate. We are looking at travel, investment, consulting, healthcare and educational institutions to acquire, and expect to conclude a deal in about a year’s time,” 3icsl managing director and chief executive Ravi Jagannathan told Business Standard.
3icsl, which was incorporated in 2008, offers eMudra, Digital Signature and Taxsmile, an online tax management portal that empowers tax payers to prepare and e-file accurate income tax returns. Taxsmile has seen 200,000 assesses completing e-filing of their returns in the last two years.
“Right now we are in a start-up mode. It might take at least a year to see us contributing significant revenues to the parent,” Jagannathan said, adding the company would go in for an initial public offering (IPO) in about three years from now, before which it would like to make sure that all its engines are in place.
3icsl is currently building a portal called MyInsurance, which processes insurance origination online. The company plans to launch this product in the next three years. Jagannathan said they were already in discussion with companies abroad to offer its solutions. Africa is one market which is evincing interest, he said.
According to him, the number of tax returns filed in India is likely to touch 100 million in the next decade, from the current 30 million. “Of the 30 million income tax filed last year, over 1.1 million were filed online,” he added.
Stating that the Union finance ministry might make it mandatory to file tax returns online over a period of time, he said a majority of the e-filings was done by salaried employees working in the industries such as IT & ITeS, telecom, insurance and banking.
The finance ministry’s recent initiative to set up centralised processing centres (CPCs) across the country is likely to give impetus to the online tax filing process. “Unlike the traditional e-filing system, where some of the procedures were undertaken manually, the proposed CPCs will enable complete e-filing online. As a result of these CPCs, we anticipate that the total time to file tax returns will reduce drastically. Secondly, adoption will increase,” Jagannathan said.
The company currently employs 120 professional across its centres in Mumbai, Delhi, Chennai and Bangalore.
