Cholamandalam Investment to acquire 72% stake in Payswiff for Rs 450 cr
New Delhi, Jan 17 (PTI) Cholamandalam Investment and Finance Company on Monday said it plans to acquire 72.12 per cent stake in fintech payment solutions provider Payswiff Technologies Private Ltd for Rs 450 crore.
The company, an NBFC, is part of the Murugappa Group.
Cholamandalam Investment has signed a shareholders' agreement and a Share Purchase Agreement on January 17, with Payswiff, its founders and other existing shareholders, according to a regulatory filing.
"The total investment will result in the company holding up to 72.12 per cent of the equity capital of Payswiff on a fully diluted basis and Payswiff consequently will become a subsidiary of the company," it said.
The cash deal may take place in one or more tranches at a price of Rs 1,622.66 per share.
Incorporated in 2013, 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 their customers in-store, at home deliveries, online, and on-the-go using mPOS and POS solutions, it said.
"The proposed acquisition is in line with the long-term strategy of the company to explore and expand in the entire lending ecosystem model particularly in the SME segment. Payswiff being a company forming part of the digital and technology ecosystem in the SME segment is expected to add value to the existing Chola ecosystem," it said.
This investment will provide a platform to build new age SME offering at scale, access to the SME network across the country and an opportunity to be one of the preferred SME financiers, it said.