Kotak Mahindra Bank to invest Rs 310cr in fintech firm KFin Technologies

Kotak Mahindra Bank Limited (KMBL) has agreed to acquire a stake of 9.9% in KFin Technologies, an investor and issuer servicing platform, for about INR 310 crores.

Based in Hyderabad, KFin Technologies offers a range of financial technology solutions across various asset classes spanning mutual funds, insurance, alternatives, and pension.

M.V. Nair — Chairman of KFin Technologies said: “KFin is uniquely positioned to leverage its decades of deep capital markets expertise to deliver a differentiated value proposition to the financial markets in India and abroad. Kotak Mahindra Bank’s investment is testimony to the same.

“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 Bank to invest Rs 310cr in fintech firm KFin Technologies. Photo courtesy of Indrajit Das/Wikipedia.org.

The investor servicing company is said to serve 25 out of the 44 Indian mutual fund AMCs, which have more than $148 billion in assets under management (AUM) and 35% market share in equity AUM.

KFin Technologies is claimed to have been selected as the partner for four of the last five AMCs licensed by SEBI. The company caters to 23 mutual funds and pension managers across Asia (ex-India) in Malaysia, Singapore, the Philippines, and Hong Kong.

Besides, the company is involved in the alternatives and private wealth management space, serving more than 300 AIF schemes launched by over 100 fund managers.

It is also said to cater to more than 550 listed and 3,700 plus unlisted corporates in India as a corporate registrar.

KFin Technologies is also among the two players, which provides central recordkeeping services to the National Pension System in India. The company is said to be expanding in insurance transaction processing and fund administration as well.

The company’s proprietary applications, hybrid cloud environment, and big data technologies are said to allow servicing of more than 13 crore folios and processing of 10 lakh plus transactions on a daily basis.

Dipak Gupta — Joint Managing Director of Kotak Mahindra Bank said: “As a platform of choice for asset managers, investors and corporates, we believe KFin is well-positioned to continue growing its market position. 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.”

Earlier this year, Kotak Mahindra Bank had invested in Ferbine Private Limited, a fintech company promoted by Tata Sons.