o The proposed investment will help KFintech to diversify its business by entering into the Technical Service Provider (TSP) andAccount Aggregators (AA) domain
o The proposed transaction will help FPSIPL to leverage KFintech’s technology prowess
Bangalore, February 24, 2023: KFin Technologies Limited (“KFin Technologies”), a leading provider of investor and issuer solutions, today announced its decision to invest into Fintech Products and Solutions India Private Limited (FPSIPL), a Technology Service Provider (TSP) having a wholly owned subsidiary, FinSec AA Solutions Private Limited, India’s first Account Aggregator, licensed by Reserve Bank of India (RBI). The partnership will help KFintech venture into TSP and AA business as it looks to diversify beyond its current offerings across asset classes in the financial services ecosystem.
MoneyOne, the brand of FPSIPL, is in the business of providing technology solutions for the BFSI sector. Their primary offering, as a TSP, is to providea platform for enabling data sharing, data governance and analysis, and related solutions to the clientele in the BFSI domain. OneMoney, the brand of FPSIPL’s wholly owned subsidiary, is India’s first Account Aggregator (AA), with an NBFC AA license from the RBI. OneMoney is a leading player with over 45% market share in a competitive and emerging Account Aggregator domain.
After this investment, KFin Technologies will own 25.63% of the post-issue equity share capital of FPSIPL. KFintech can acquire additional equity sharecapital of FPSIPL, taking its aggregate shareholding in FPSIPL to 75.01%, subject to the satisfaction of customary closing conditions and receipt ofregulatory approvals.
On the occasion, Sreekanth Nadella, Managing Director and Chief Executive Officer of KFin Technologies, said, “As a scaled multi-asset global solution provider for fundmanagement, 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 over5000+ clients locally and globally being serviced through at-scale and innovative technology solutions. Combined with the proven capabilities of the market leader in AccountAggregation – 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.”
Krishna Prasad Atluri, Founder and Chief Executing Officer, FPSIPL, said, “This investment is highly synergistic and shall enable FPSIPL to leverage KFintech’s technological finesse to deliver world-class and agile TSP solutions, high-end data analytics and best-in-class AA solutions and Open Banking solutions to the markets in Indiaand abroad, especially to serve the underserved and unserved segments.”
This acquisition shall enable KFin Technologies to leverage its technology competence to deliver best-in- class TSP solutions to BFSI players and new-age start-ups and scale up AA value propositions beyond lending as a used case to wealth management for retail consumers.
