Indian fintech platform Avail Finance has reportedly acquired neo banking platform YeLo for an undisclosed sum.
Avail Finance is also seeking the regulator’s permission to acquire non-banking financial company Art Climate Finance, mint reported citing people familiar with the matter.
The deals are part of Avail Finance’s strategy to cater to lending, insurance, savings and investment needs of blue-collar workers through one platform.
“Avail Finance also plans to raise funds by the year-end,” the source told the publication.
Co-founded by former Omidyar Network executives Nilesh Agarwal and Abhishek Challa, YeLo is focused on blue-collar workers making $107.73 (INR8,000) to $403.99 (INR30,000) a month.
The fintech, which is a brand operated by 0.5Bn Finhealth and backed by Matrix Partners, Omidyar Network India, Flourish VC and Better Capital, had partnered with ICICI Bank earlier.
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“The deal has not been formalized yet. However, Avail Finance has been paying salaries to YeLo employees and other costs in the form of some consulting fees, which is close to $53,865 (INR4m) to $67,331 (INR5m) a month,” the person added.
As per the report, the deal, which is in the advanced stage, could be investor-driven as Avail Finance also counts Matrix Partners as its backer.
Meanwhile, the acquisition of Art Climate Finance is yet to receive regulatory clearance.
The deal will give Avail Finance access to the NBFC licence. Currently, it offers loans to customers in partnership with other NBFCs.
In 2019, Avail Finance had applied for an NBFC licence through its subsidiary, AF Capital; however, it was rejected by the central banking authority.