Triterras has signed a letter of intent (LoI) to acquire a minority stake in Electronic Cash and Payment Solutions (ECAPS).
As agreed, Triterras will invest $4m in Singapore headquartered ECAPS for minority ownership. The two companies also agreed to form a strategic partnership.
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ECAPS operates an open banking platform in India and offers digital financial solutions to the emerging middle-class customers.
The platform facilitates an array of transactions including domestic remittance, utility and bill payments.
According to a press statement, ECAPS distribution network includes 4,000 distributors and 80,000 MSME retailers.
The deal will enable Triterras to foray into the Indian MSME marketplace.
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By GlobalDataTriterras chairman and CEO Srinivas Koneru said: “Our growth strategy over the last year has included not only rolling out new modules but also expanding our geographic footprint.
“This strategic partnership will bring to Triterras some excellent growth opportunities. In the near term we feel that a portion of ECAPS’ 4,000 distributors can serve as an immediate client base for our offering on Supply Chain finance through our Kratos platform.
“We think that there is great growth potential in dealing directly with these potential clients. Executing a strategic partnership that provides Triterras with immediate access to 4,000 potential SCF clients is a far better alternative than attempting to create those relationships on our own over a period time.”
He also added that the partnership will work to develop a ‘merchant lending’ solution. It will provide a working capital lending platform for retailers and distributors in ECAPS network.
The completion of the transaction is subject to completion of due diligence and signing of definitive agreements.
Triterras is a fintech company for trade and trade finance. It operates Kratos platform that enables commodity traders to trade and source capital from lenders directly.
