Government-owned oil marketing company Bharat Petroleum Co Ltd (BPCL) has acquired 21% stake (on a fully diluted basis) of FINO Paytech for Rs 251 crore in an all-cash deal. The latter had acquired a licence for payments bank last year. This deal values FINO Paytech at around 1250 crores or aprox Rs 175 per share.
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Rishi Gupta, chief executive officer and managing director of Fino PayTech, said the partnership will be a win-win for both sides. The extensive reach of BPCL distribution allows Fino Payments Bank to substantially improve its reach, especially in rural India. On the other hand, BPCL will be able to offer a variety of payments bank products to its customers and partners.
Founded in 2006, FINO PayTech is a financial inclusion software solutions and services company. It has received funding from investors including Intel Capital, IFC, Headland Capital, Blackstone and ICICI Bank. It processes Rs 1,000 crore worth of transactions every month with a gross margin of 2-3%. It has around 30,000 transaction points, about 20,000 business correspondent agents across 28 states covering over 500 districts. Profitable since 2010, for the year 2014-15 Fino reported a gross revenue of Rs 219 crore and net profit of Rs 10 crore.