Kotak Mahindra Bank to invest in KFin Technologies

KMBL shall acquire, subject to necessary approvals, a ~9.9% stake in KFin by investing ~Rs310cr as primary infusion in the Company.

Sep 20, 2021 10:09 IST India Infoline News Service

Kotak Mahindra Bank Limited (KMBL) today announced that it has agreed to make an equity investment in KFin Technologies (KFin or the Company), a leading investor and issuer servicing platform. KMBL shall acquire, subject to necessary approvals, a ~9.9% stake in KFin by investing ~Rs310cr as primary infusion in the Company.

KFin provides a wide array of financial technology solutions across a broad spectrum of asset classes spanning mutual funds, alternatives, insurance, and pension. KFin serves 25 out of the 44 Indian Mutual Fund AMCs, which have over US$148 billion in AUM1 and 35% market share in equity AUM1 (up from 27% in March 20192).

The Company has been chosen as the partner for four of the last five AMCs licensed by SEBI. KFin serves 23 mutual funds and pension managers across Asia (ex-India) including Malaysia, Philippines, Singapore and Hong Kong. KFin is also a leading player in the alternatives and private wealth management space, serving 300+ AIF schemes launched by 100+ fund managers.

The Company also serves 550+ listed and 3,700+ unlisted corporates with over eight crore folios in India as a leading corporate registrar. KFin is also one of the two players providing central recordkeeping services to the National Pension System in India and is expanding in insurance transaction processing and fund administration.

KFin’s proprietary applications, big data technologies and hybrid cloud environment enable servicing of over 13 crore folios and processing of over 10 lakh transactions on a daily basis. KFin is a Great Place to Work CertifiedTM organisation for the last two years (2020 and 2021) and has won several awards in the Fintech and Leadership space.

Dipak Gupta, Joint Managing Director, 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.”

M.V. Nair, Chairman, 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.”

Sreekanth Nadella, CEO, KFin Technologies said, “Kotak Mahindra Bank’s shared vision to deliver outstanding value in a simple and straightforward manner, strongly complements KFin’s commitment to provide unparalleled client outcomes on demand. We believe this investment shall serve as a strong foundation for KFin to build next generation techfin solutions for financial infrastructure institutions. We are extremely proud to have been chosen by Kotak Mahindra Bank in the rapidly expanding financial infrastructure solutions market in India and abroad.”

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