FINO Paytech pre-IPO investment opportunity

Fino Paytech FINO Paytech is a leading provider of last mile banking solutions. In August 2015, the company got a payment banking license from RBI. The payments bank is expected to be operational before the end of this calendar year. Fino Paytech is the promoter of Fino Payments Bank. Preipo finopaytech share price is near Rs 100.

In July 2016, Government-owned oil marketing company Bharat Petroleum Co Ltd (BPCL) picked up a 21% stake in the company for Rs 251 crore in an all-cash deal. This deal values FINO Paytech at around 1250 crores or aprox Rs 175 per share.

There is currently a unique and attractive pre-IPO investment opportunity available in this company. For buying shares of FINO Paytech or any other companies, please call on 8108303330 

Fino Paytech Unlisted Shares details –
Face Value – Rs 10
ISIN – INE511I01011
PAN Number – AAACF9869M
CIN – ‎U72900MH2006PLC162656
Registered Office – Mindspace Juinagar, 9th Floor, Plot No. Gen 2/1/F, Tower 1,TTC Industrial Area, MIDC Shirwane, Juinagar Navi Mumbai Thane Maharashtra 400706

FINO PayTech is an institutional investor driven company owned by international and Indian investors. Foreign shareholding in FINO currently stands at 70%. Major investors in the company include ICICI Group (16%), Headland Capital Partners (15%), International Finance Corp (10%), Intel Capital (10%) and Blackstone (10%). Its other shareholders are Corporation Bank, Union Bank, Indian Bank and Life Insurance Corporation.

Fino Paytech, founded on July 13, 2006, is headquartered at Mumbai, with offices across India. It is a business and banking technology platform combined with an extensive services delivery channel, whose vision is to fulfill every financial service need of its customers, and thus become their universally preferred choice. Fino Paytech is associated with some of most the reputed partners from government to financial institutions.

FINO PayTech Limited is the largest business correspondent in India offering a bouquet of financial services at low cost on a secure, trusted and robust technology platform. The company is present in 499 districts across 28 states In India. Fino Paytech, with over 78 million customers, is the largest smart cards issuer through the branchless banking model

Business Correspondent (BC) – The business correspondent [BC] model is a low cost alternate Technology: Low cost platform agnostic technology, which is banking channel that rests on robust technology to serve the accessible through hand-held devices, Micro-ATMs and Ultra bottom of pyramid population at their doorstep.

Financial Performance (Rs Crore)

Top management of Fino Paytech limited: Fino Paytech is led and managed by visionary leaders – experts who excel in their respective fields. They bring in extensive experience ranging from 13 to 20 years, having previously held prestigious positions at reputed global organisations. Its Board of Directors comprises various experienced professionals from leading financial institutions such as The BlackStone Group, HAV3 Holdings, The International Finance Corporation, and ICICI Bank Limited.

Rishi Gupta – MD & CEO
Ashok Kini  – Non-Executive Chairman, Independent Director
Rajeev Arora – Additional Director in the capacity of Whole-time Director

Key shareholders (as on 31 March 2019):

“FINO Paytech model dovetails mainstream banking witn least cost technology and intensive alternate delivery channel for the customers to avail of a full bouquet of services making it the best successful model globally” CEO, FINO PayTech Limited.

Fino Payments Bank (FPB) is a wholly-owned subsidiary of Fino Paytech. FPB plans to more than double merchant points by FY23 to improve access to banking. FPB is working towards ramping up its network of ‘merchant points’ from the current 4 lakh to 10 lakh by FY23. The aim is to ensure customers don’t need to travel more than 300 metres to access its services, against the average 1 km they travel now.

FPB’s merchant banking points, which are usually local shops equipped with interoperable micro-ATMs, offer services such as cash deposit/withdrawal, opening new bank accounts, domestic money transfer, bill payment, recharge and travel booking.

Rishi Gupta, MD and CEO, observed that though the number of new accounts opened (including under the Pradhan Mantri Jan Dhan Yojana) by banks has jumped over the past few years, the infrastructure (branches, ATMs and point-of-sale terminals) to service these account holders has not kept pace.

On an average, Fino opens 80,000-1,00,000 bank accounts (savings and current) a month. Our focus has always been to increase the access to banking points across the country,” he further said, adding that FPB continues to invest $3-4 million a year to upgrade technology.

Besides operating businesses such as jewellery, mobile and grocery stores, FPB’s merchant points double up as banking outlets. With cash availability being a problem in rural areas, these points can dispense money generated by their own businesses. This way, the cash gets recycled locally. Also, unlike banks, which have regulated business hours, these points don’t have any.

When FPB launched operations in June 2017, it used to log monthly transactions of Rs 1,500 crore. In October 2019, the monthly transaction volume crossed Rs 10,000 crore.

Outlook:

The company expects to raise between Rs 400 crore and Rs 500 crore which will simultaneously dilute the foreign shareholding in the company to below 49% to comply with the RBI licensing conditions. Private equity investors, banks, insurance, technology, retail and non-banking finance companies are showing interest in picking up stake.

Recently there are news reports that ICICI Bank would be its partner bank for support in deposits, cash management, manpower and technology. Fino PayTech already offers a variety of other services, including recharges for mobiles, utility bill payments, ticket booking, insurance distribution, and assisted online shopping, among others.

The fast-growing remittances on the retail platform (which had doubled in the past five months to about Rs 300 crore every month) augurs well for the fintech company.

Recent Developments-

Fino Payments Bank to more than double merchant points by FY23 – January 2020

Fino Payments Bank (FPB) is working towards ramping up its network of ‘merchant points’ from the current 4 lakh to 10 lakh by FY23. The aim is to ensure customers don’t need to travel more than 300 metres to access its services, against the average 1 km they travel now.

Fino Paytech invests in CityCash – December 2018

Through the partnership Fino will attempt to digitise public transport payment for consumers taking the bus, auto or cabs in the country.

 

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