New Delhi-based non-bank lender DMI Finance has acquired a controlling stake in payment system operator Appnit Technologies Private Limited (ATPL), which offers payment products across banking channels.
Appnit, which is also the Reserve Bank of India’s prepaid payment instruments (PPI) license holder, said it is planning roll out of various wallet based pre-paid products through its customer-facing platform Oxymoney that provides various services including utility bill payments, DMI Finance said in a statement.
“Appnit will become a subsidiary of DMI Finance,” it added.
It did not disclose financial details of the transaction.
“We are delighted to be a part of the DMI Finance family – the strategic synergies are a significant boost to our journey to make cutting-edge financial products and services accessible to a wider customer base,” said Nitin Kapoor Co-Founder and CEO of Appnit.
Set up in 2016, Appnit is an integrated payment processing platform leveraging new-age solutions to provide services including various wallet services, money transfers, AePS, utility bill payments, and micro ATMs, through its distribution network across India.
“It (the acquisition) provides us with a platform through which we can broaden both our customer base and product suite. A dedicated payments team allows us to continue to deliver innovative credit products in our quest to drive financial inclusion at scale across India,” said Shivashish Chatterjee, Co-Founder and Joint MD at DMI Finance.
Co-founded in 2008 by former Citigroup executives Chatterjee and Yuvraj C Singh, DMI Finance has been in the real estate financing space for over a decade.
It is the non-banking financial company (NBFC) of the DMI Group, and has been lending since 2009. It provides personal loans, lines of credit, buy now pay later (BNPL), original equipment manufacturer financing and micro, small and medium enterprise (MSME) loans.
Earlier in January, DMI Finance Private Limited announced the closure of a $47 million (around Rs 347.5 crore) equity investment round from new investor Sumitomo Mitsui Trust Bank Limited (SuMi) and two other existing investors.
Besides, Japanese investor SuMi, DMI Finance is backed by Liechtenstein-based asset management firm New Investment Solutions and South Korean investment firm NXC Corporation.
Among domestic investors, Dabur India promoter’s Burman Family Office is also a shareholder of DMI Finance.
Currently, the company has 40 offices in India, with a pan-India credit platform focused on core businesses in digital, consumer and MSME finance, housing finance, wholesale finance, and asset management.
Acquisitions across fintech space have been witnessing a boom in the past few months.
Early in March, software-as-a-service (SaaS) firm Perfios acquired financial technology platform Karza Technologies for an undisclosed amount.
Last month, digital payments and financial services unicorn Razorpay Software Pvt Ltd, had acquired a majority stake in Malaysia-based fintech firm Curlec, marking its first international acquisition.
In January, global fintech company MODIFI acquired Seawise Capital’s trade finance and software as a service business in India, for an undisclosed amount.