Findi's Strategic Moves: Acquisition and Financial Performance in FY25
FND (FND) Share Update November 2024 Thursday 28th
Findi Announces Strategic Acquisition and FY25 Financial Results
Findi Limited, a leading fintech company in India, has announced its acquisition of Tata Communications Payment Solutions Ltd (TCPSL) and reported robust financial results for the first half of FY25.
Instant Summary:
- Acquisition of Tata Communications Payment Solutions Ltd (TCPSL).
- Reported revenue of $30.7 million and EBITDA of $12.9 million for 1H FY25.
- Strategic expansion in India's digital payments and ATM markets.
- Projected FY25 revenue between $80 to $90 million and EBITDA between $30 to $35 million.
Acquisition Details
Findi Limited has completed the acquisition of Tata Communications Payment Solutions Ltd (TCPSL), a strategic move that enhances its position in the Indian fintech market. The acquisition is valued at A$75.7 million and is expected to significantly bolster Findi's ATM and digital payments operations.
The acquisition aligns with Findi's strategy to expand its footprint in the digital payments landscape and leverage synergies between its physical cash ATM business and digital operations.
Financial Performance
For the first half of FY25, Findi reported revenue of $30.7 million and EBITDA of $12.9 million, exceeding internal budget expectations. The company's performance was temporarily affected by the Indian general elections but has since returned to trend.
Strategic Expansion
Findi continues to expand its ATM and digital payments network across India. The company aims to increase its merchant base to 60,000 by March 2025 and further to 120,000 by March 2026, supported by strategic partnerships and a robust distribution network.
Findi's strategy includes leveraging its White Label ATM (WLA) license to enhance financial inclusion and offer a comprehensive suite of financial services.
The acquisition of TCPSL positions Findi as a major player in India's fintech sector, potentially increasing its market share and profitability. The strategic focus on expanding digital payments and ATM networks is likely to drive long-term growth and enhance shareholder value.
Investor Reaction:
Analysts view the acquisition positively, noting the potential for increased market penetration and revenue growth. The strategic alignment with India's digital payments growth trajectory is expected to bolster investor confidence.
Conclusion:
Findi's strategic acquisition and robust financial performance highlight its strong position in the Indian fintech market. Investors should consider the long-term growth potential as Findi continues to expand its digital payments and ATM operations.