Tag: Fintech company

AGS Transact Technologies plans IPO of up to ₹800 crore through OFS

Banking & Finance

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AGS Transact Technologies Ltd (AGSTTL) is planning an initial public offer (IPO) of up to ₹800 crore through an offer for sale (OFS) by the selling shareholders.

The OFS will be made by the promoter selling shareholder — Ravi B Goyal — aggregating up to ₹792 crore and other selling shareholders — VC Gupte, Shailesh Shetty, Rakesh Kumar, Nikhil Patiyat and Rajesh Harshedrai Shah — aggregating up to ₹8 crore.

The selling shareholders collectively hold 55.33 per cent of the pre-offer share capital of the company.

As per AGSTTL’s draft red herring prospectus, the objects of the offer are to carry out OFS by the selling shareholders and to realise the benefits of listing of the equity shares on the stock exchanges, enhancement of the company’s brand name and creation of a public market for the equity shares in India.

Currently, promoters — Ravi B Goyal (55.20 per cent stake) and Vineha Enterprises Private Ltd/VEPL (42.21 per cent) — collectively hold 97.61 per cent stake in AGSTTL. The promoter group holds 98.23 per cent stake.

AGSTTL is an omni-channel payment solutions provider, which provides digital and cash-based solutions to banks and corporate clients.

The company provides customised products and services comprising ATM and CRM outsourcing, cash management and digital payment solutions including merchant solutions, transaction processing services and mobile wallets.

For FY21, AGSTTL’s revenue from operations was at ₹1,759 crore (₹1,800 crore for FY20) and net profit was ₹55 crore ( ₹83 crore).

Pursuant to a Share Subscription Agreement (SSA) dated April 1, 2021 entered into between VEPL and AGSTTL, the latter subscribed to 65 crore compulsorily convertible preference shares (CCPS) of VEPL of face value ₹10 each.

Pursuant to a share purchase agreement dated August 16, 2021 entered into between Ravi B. Goyal and AGSTTL, Goyal has agreed to purchase and AGSTTL has agreed to sell the VEPL CCPS on terms set out in such agreement, as per the DRHP.

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Pencilton raises $330K in a pre-seed round by Jupiter, others, BFSI News, ET BFSI

Banking & Finance

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HYDERABAD: Pencilton, a teen-focused fintech company, has announced raising $330K in a pre-seed round led by Jupiter (registered as Amica Financial Technologies Pvt. Ltd). The round also saw participation from Nilesh Patel and Prashant Singh (Founders, LeadSquared), Ashish Sharma (MD, Innoven Capital), Abhishek Goyal (Founder of Tracxn), Himanshu Sharma (Founder, Aspiring Minds), Kunal Sinha (Founder, GlowRoad), Vignesh Ramanujam (Partner, Spoonfeed) and angel investor Tirumalareddy Karri.

Pencilton offers a debit card, PencilCard, to teenagers and students to help them manage their expenses while teaching them the basics of money management. An upgrade is expected to its debit card in a few weeks that works with the Pencilton app to enable financial inclusion and digital financial literacy for teenagers. With the new funding, the company aims at product enhancement by building industry-leading backend systems for card issuance, management, and further launching of upgraded products. The company was founded by Vishwajit Pureti, Ashish Singh, Pallavi Tipparaju, and Viraj Gadde in 2020.

In a statement, Vishwajit Pureti said, “This round is important as it serves as a vehicle for us to have some of the best minds from the fintech and startup ecosystem, join us on our mission. We are going to announce many industry-leading initiatives that will help bring the best of fintech tools and digital financial literacy to students across India.”

The company has recently introduced the PencilCard, a RuPay debit card for teens across India that can be activated and managed via the Pencilton app. Teens can use the debit card to manage, receive and spend their pocket money through the help of the app. In addition, parents can also use the app to give pocket money, setting parental controls such as the spend limits, approval of money requests, etc.

Pencilton chose the RuPay card platform as it is a product built in India and line with the Government’s ‘Make in India’ policy. It also allows Pencilton to work closely with NPCI to innovate on various aspects of the fintech ecosystem that will soon help bring some never-before-seen features of fintech, not just in India but the whole world, to the fingertips of the next generation.

“The teen/pre-teen banking segment is nascent and growing rapidly. We believe that the Pencilton team understands the space and is solving both kids’ and parents’ needs,” said Rahool Gadkari, Director of Product, Jupiter, in a statemet.

Pencilton aspires to educate the younger generation on financial literacy and management and become the most innovative and prominent player in this space.



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BharatPe raises Rs 139 crore debt from Alteria Capital, ICICI Bank

Banking & Finance

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Fintech company BharatPe on Sunday said it has raised Rs 139 crore (about USD 20 million) in debt from venture debt firm Alteria Capital and ICICI Bank that will be used to strengthen its lending business and provide credit to merchants.

Founded by Ashneer Grover and Shashvat Nakrani in 2018, BharatPe offers merchants a single interface for all UPI apps like Paytm, PhonePe, Google Pay, BHIM, Mobikwik, Freecharge and others. It also facilitates loan facility for its merchant partners.

Speaking to PTI, BharatPe co-founder and CEO Ashneer Grover said Rs 90 crore in debt came from Alteria Capital, while the remaining Rs 49 crore was from ICICI Bank.

 

“We have raised funds from ICICI Bank at a competitive interest rate of less than 9 per cent. We are aggressively building our lending vertical and our loan book is currently at Rs 400 crore.

“With this infusion, we can double down on our efforts and we expect the loan book to grow to Rs 700-750 crore by the end of March 2021,” he added.

Grover said BharatPe had set a target of disbursing Rs 1,000 crore of loans in 2020-21, of which Rs 800 crore has already been disbursed.

“The latest tranche of debt raised will help further build the lending business and enable credit for millions of businesses, across the length and breadth of India,” Grover said.

Last week, BharatPe raised Rs 60 crore in debt from Innoven Capital. With this, BharatPe has raised a total of Rs 199 crore (USD 28 million) in debt till date. It had said it plans to raise over Rs 5,000 crore in debt funding in the next two years to build its lending business.

“We have committed ourselves to provide USD 700 million of loans to small merchants and kirana store owners by March 2023 and are hoping to onboard more institutional debt partners in the near future,” he said.

Grover added that the company aims to become a digital bank that is the one-stop destination for merchants for all kinds of financial services and this tranche of funds will get things rolling.

Merchants are the top priority for the company and it is committed to solving the credit problem for them, he said.

“The institutional debt raised will help catapult our lending business. We intend to raise close to USD 700 million of debt capital over the next two years… By March 2023, our aim is to be present in 300 cities and have the lending product available in 200 cities,” he added.

Grover said the company has already disbursed loans to more than one lakh merchants and aims to scale this up by 8-10 times and enable credit for a million kirana store owners in 2021.

Currently, serving over 50 lakh merchants across 65 cities, the company has grown business 30 times in 2019 and processed over six crore UPI transactions a month (annualised transaction processed value of over USD 7 billion).

BharatPe has raised close to USD 171 million in equity and debt till date. The company’s investors include Beenext, Sequoia, SteadView Capital, Ribbit Capital, Coatue Management LLC, Insight Partners, and Amplo.

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