Hyderabad: Financial and investment service provider Cholamandalam Investment and Finance Company (CIFC) has announced its plans to acquire 72.12 per cent in Hyderabad-based digital payments ecoystem player Payswiff Technologies for Rs 450 crore.
It signed a shareholders agreement and a share purchase agreement on January 17 with Payswiff, its founders and other existing shareholders, CIFC said. The total investment will result in the company holding up to 72.12 per cent of the equity capital of Payswiff. Payswiff consequently will become a subsidiary of CIFC.
Payswiff is engaged in the business of enabling online payment gateway services for e-commerce businesses and provides e-commerce solutions. Payswiff is an omni channel payment transaction solution that lets business owners accept payments from customers in-store, at home deliveries, online, and on-the-go using mPOS and POS solutions.
Hyderabad Newsclick here for more Hyderabad NewsIn a note to the stock exchanges, CIFC said Payswiff, which operates in the fintech payments segment, had a turnover of about Rs 210.58 crore in 2020-21. It was Rs 66.15 crore in 2019-20 and Rs 78.77 in 2018-19. Prabhu Ram is the Managing Director and Group Chief Executive Officer of Payswiff.
The proposed acquisition is in line with strategy of the company to explore and expand in the lending ecosystem model, particularly in the SME segment, CIFC said adding that the investment will provide a platform to build newage SME offerings at scale, access to the SME network across the country and an opportunity to be one of the preferred SME financiers, the regulatory filing said.
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