SYDNEY: Digital payments and financial services provider Findi Limited (ASX: FND) announced Tuesday that it has agreed to acquire BankIT Services Pvt. Ltd. for A$30 million. The acquisition will be made through Findi’s majority-owned subsidiary, Transaction Solutions International (India) Pvt. Ltd.

BankIT, a profitable digital financial products distributor founded in 2010 by Amit Nigam, is a leader in the Indian financial technology sector. The company offers a range of services, including SpiceMoney, which leverages technology to provide affordable financial solutions to Indian consumers. Nigam and his team will continue to oversee BankIT’s growth under Findi’s ownership.

The acquisition, subject to standard conditions, aims to enhance Findi’s strategic objective of evolving into a fully-fledged payments bank. BankIT is currently the only pan-Indian ATM operator with a nationwide digital business. Findi’s digital business FindiPay is now self-funding and cash flow positive.

The acquisition will also support Findi’s White Label ATM (WLA) locations, with the Findi Board advising that 10,000 (5%) of the combined 200,000 merchant locations will be potential sites for WLA roll-out. The transaction is expected to complete before the end of the financial year on March 31, 2025.

Findi Executive Chairman Nicholas Smedley described the acquisition as a transformational step for Findi, positioning the company to become an Indian payments bank and accelerating the expansion and diversification of its offerings. Smedley emphasized the acquisition’s role in driving financial inclusivity and reshaping the financial landscape in India over the next 5 to 10 years.

The acquisition will enhance Findi’s ability to offer a full stack of financial services to India’s underbanked and unbanked populations, including domestic money transfer, Aadhar Enabled Payment System, micro ATM, bill payments, recharges, travel services, and insurance services. Findi will focus on consolidating recent acquisitions and preparing for the IPO of TSI India, which remains on track for 2026.

Strategically, the acquisition accelerates FindiPay’s merchant acquisition strategy, targeting 200,000 merchants by March 31, 2025. The transaction is expected to deliver approximately 25% of consolidated revenues from Findi’s digital segment two years ahead of plan. Additionally, Findi’s recent acquisition of Tata Communications Payment Solutions Ltd will extend its digital reach by offering Findi-branded ATMs.

The acquisition will be funded from Findi’s existing cash resources, with A$19.54 million net initial cash consideration to be paid at completion and A$4.55 million to be paid six months post-completion, bringing the total net cash consideration to A$24.1 million.

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