Cholamandalam Investment & Finance Company has entered into an agreement to make a strategic investment in the equity shares of Payswiff Technologies Private Limited (Payswiff) up to a sum not exceeding Rs.450 crores in one or more tranches. The total investment will result in the Company holding about 70% of the equity capital of Payswiff on a fully diluted basis and Payswiff will become a subsidiary of Chola. Payswiff is a leading POS provider in India enabling online payment gateway services for e-commerce businesses and providing e-commerce solutions with a total merchant base of 3 lakh+ small to mid-sized merchants like supermarkets, medical stores etc.
"Chola will become the majority investor in Payswiff post-investment transaction and will be uniquely positioned amongst NBFCs to offer a comprehensive product offering to meet end to end needs of MSMEs including Lending, Payment solutions, Neo banking and many other value-added services. This acquisition proposal is in line with the long-term strategy of the company to explore and expand in the entire lending ecosystem particularly in the MSME segment. Payswiff being a company forming part of the digital and technology ecosystem in the MSME segment is expected to add value to the existing Chola ecosystem. This investment will provide a platform to build new-age MSME offering at scale and access to the MSME network across the country." said Mr Subbiah.
Mr. Prabhuram, Founder, MD & CEO of Payswiff said "India is amidst a historical Fintech revolution where we are seeing rapid and massive adoption of digital payment systems by consumers, merchants as well as banks. We are excited to join hands with Chola, one of the largest NBFCs in India. This presents us a unique opportunity to jointly work in leveraging strengths and gives us the power and ability to be at the forefront of driving innovation and transform India's financial and banking services."
Shares of Cholamandalam Investment and Finance Company Limited was last trading in BSE at Rs. 612.55 as compared to the previous close of Rs. 600.45. The total number of shares traded during the day was 162557 in over 6179 trades.
The stock hit an intraday high of Rs. 625.95 and intraday low of 605.00. The net turnover during the day was Rs. 100134729.00.