Kotak Mahindra Bank Limited (KMBL) in India has agreed to acquire around 9.9% stake in financial technology solutions provider KFin Technologies.
As agreed, KMBL will invest around INR3.1bn ($42.09m) in the fintech to acquire the minority stake.
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The completion of the deal is subject to necessary approvals.
KFin Technologies: Details
KFin, majority owned by funds managed by General Atlantic, offers solutions across a range of asset classes. This includes mutual funds, alternatives, insurance and pension.
The fintech is said to serve 25 out of the 44 Indian mutual fund asset management companies (AMC) AMCs. It is also active in the alternatives and private wealth management space.
Kotak Mahindra Bank joint managing director Dipak Gupta said: “As a platform of choice for asset managers, investors and corporates, we believe KFin is well-positioned to continue growing its market position.
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By GlobalData“At Kotak Mahindra Bank, this investment is in line with our stated strategy of making minority investments in businesses which are professionally managed and have deep client entrenchment.
“We are excited about the future growth prospects of the business and believe that an investment in KFin, with its significant franchise, will create long-term value for our stakeholders.”
KFin Technologies chairman M.V. Nair said: “With Kotak Mahindra Bank’s support, along with the continued support of General Atlantic, an existing shareholder of KFin, we shall be able to achieve greater heights in our technology, business processes, leadership depth and governance.”
Kotak Mahindra Group is a financial services conglomerate in India. The group’s flagship company Kotak Mahindra Finance (KMFL) received banking licence in 2003.
It was the first non-banking finance company in India to convert into a bank called Kotak Mahindra Bank.
Kotak Mahindra Bank now has a national footprint with 1,612 branches, as on 30 June 2021.
Last year, Kotak Mahindra Bank launched Video KYC to allow customers open a savings account remotely.
