Cholamandalam Group group acquires Payswiff to penetrate in MSME segment
New Delhi, 18 Jan (KNN) Cholamandalam Investment and Finance Company, the NBFC arm of Murugappa Group, on Monday said it would acquire 72.12 per cent stake in Payswiff Technologies Private Ltd, which is engaged in the business of enabling online payment gateway services for e-commerce businesses, for INR 450 crore in an all-cash deal.
Cholamandalam has signed a shareholders agreement and a share purchase agreement with Payswiff, its founders and other existing shareholders on January 17, 2022.
“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 Cholamandalam,” according to a communique to stock exchanges.
The cash deal may take place in one or more tranches at a price of INR 1,622.66 per share.
“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 newage SME offering at scale, access to the SME network across the country and an opportunity to be one of the preferred SME financiers, it added.
Incorporated in 2013, Hyderabad-based Payswiff is an omnichannel 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. The company reported a consolidated turnover of INR 251 crore in FY21, up from INR 66 crore in FY20 and INR 79 crore in FY19.