Fino Paytech IPO Company Profile:

Founded on July 13, 2006, Fino Paytech is headquartered in Mumbai, with offices across India. It is a business and banking technology platform combined with an extensive services delivery channel, whose vision is to become the customer’s universally preferred choice by fulfilling every financial service need of its customers.

Fino Paytech is an institutional investor-driven company owned by Indian and international investors. The company has emerged as an innovator, thought leader, and implementer of technology solutions for institutions like micro-finance institutions, banks, insurance companies, and government entities. As an alternate banking channel, Fino Paytech enables seamless end-to-end customer sourcing and servicing.

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    Fino Paytech IPO Verticals:

    • Solutions: The success of Fino Paytech’s business correspondent service domain is rooted in effective field management because the majority of the risks here arise due to the remoteness of customers. The company has leveraged its extensive field experience to develop appropriate cutting-edge solutions, to productively manage the varied field aspects of operations. These are the following solutions that are provided by the company:
    • Customer Enrolment Solutions: To effectively acquire micro customers Fino Paytech has developed applications that can be used. This can be achieved using minimal hardware (including mobiles) and simple processes to address the infrastructural challenges on the ground. The company’s services also assist Indian entities to leverage this technology towards the rapid acquisition of micro customers.
    • Unlike a banking model that requires customers to physically visit a branch, Fino Paytech’s Customer Acquisition System allows customers to be acquired /enrolled at the convenience of their doorstep. This process is quicker and simpler for customers as well as banks, while at the same time, it retains the core essence of banking as well. This is done with the help of:

    • Mobile/kit Based Enrolment
    • Card Personalization Bureau
    • Hardware Solutions: Fino Paytech Financial Inclusion Solution is driven by robust and yet affordable products and technology. Fino Paytech provides a full suite of biometric products for storage, enrolment, and verification, while also maintaining all back-end system elements which enables them to develop and offer exclusive financial inclusion applications.
    • This technology enables the clients of the company to offer a rich variety of accessible and simple solutions with a whole range of products – including biometric smart cards, handheld devices, backend switches, and micro-deposit machines.
    • Operations solutions: Fino Paytech’s operations solutions team manages data messaging to churn out the required information for day-to-day planning and management of operations. The principals may either utilize some of the pre-designed reports by Fino Paytech, or ask for customized reports. There are three parts of the operations solutions:
      • Field Force Monitoring System
      • Transactions Processing System
      • Application Service Provider Solutions


    • Services: Fino Paytech offers its services to beneficiaries on behalf of its customers in some of the country’s most remote regions. The company’s model can cater to diverse customers like banks, other financial institutions, and the government.
    • Business Correspondents Services: Fino Paytech’s business correspondent services enable banks to financially include the underserved and unserved rural masses, by offering a bouquet of financial services like insurance, deposits, savings, and remittance through a pan India network. Having extensive reach in as many as 499 districts, the company is the largest business correspondent in India. The company also implements the government’s EBT scheme for beneficiaries across India.
    • Consultancy Services: Fino Paytech Consultancy Services (FCS) has been created to bridge the gap between unbanked populations across the world and formal financial institutions, and to add value to emerging branchless and micro banking channels across the developing world. Fino Paytech aspires to do this through its knowledge-sharing and consultancy services.
    • Fino Paytech provides its consultancy expertise to commercial and cooperative banks, national governments, microfinance institutions, central banks, insurance companies, and not-for-profit institutions. The company’s Consultancy Services bring on board unmatched capabilities in the areas of technology architecture, implementation, strategy and planning, product designing, channel management, regulation, policy framework, and capacity building.
    • Financial Literacy: Financial inclusion and financial literacy go hand in hand. Financial Literacy Programmes (FLP) provide access to financial services and create the necessary awareness about financial systems collectively which go a long way in achieving the goal of financial inclusion.
    • Currently, there is a dearth of financial services and financial education among the unbanked and underserved masses. Fino Paytech aspires to bridge this gap through its structured and customized financial literacy programmes (FLP).

    Fino Paytech IPO Industry Sectors:

    • Banking: Fino Paytech is a pioneer in developing and deploying micro-payment solutions that make financial services available to crores of people in unbanked areas. Access to banking has been possible due to the intelligent application of technology and development of solutions bearing in mind the multiple challenges inherent in the rural landscape – including connectivity problems due to erratic or no electricity supply, lack of mobile network, tough/limited accessibility due to difficult terrain, and socio-economic challenges such as lack of regular sustained income and illiteracy.


    • Government: Fino Paytech, through its business correspondent model, offers revolutionary technology solutions to improve the operational efficiency of social benefit schemes such as Social Security Pensions – SSP and the Mahatma Gandhi National Rural Employment Guarantee Scheme – MGNREGs. These benefits are transferred through the electronic benefit transfer (EBT) scheme, which is a part of the overall Financial Inclusion Plan (FIP), where to begin with, a bank account is required to provide a range of permissible banking services.
    • Insurance: Fino Paytech’s cutting-edge technological solution has become a game changer in India’s health micro-insurance sector. The company’s solution empowers insurance companies to reach out to customers at the bottom of the pyramid and cater to their particular financial needs, while at the same time maintaining financial viability as well. Leveraging its experience in the micro-finance sector and applying it in the micro-insurance sphere, the company has created a model that is efficient, sustainable, scalable, cost-effective, interoperable, and profitable. Rashtriya Swasthya Bima Yojana (“RSBY”) is a cashless national health insurance welfare scheme introduced by the Government of India. The objective of this scheme is to protect Below Poverty Line (“BPL”) households from the financial liabilities arising from health setbacks involving hospitalization.
    • Technology Solutions: Fino Paytech since its inception, has been a leading player in the field of designing and developing relevant technologies for the rural market. The technology solutions developed in-house by the company are cost-effective, robust, and can be fully customized in line with the specific requirements of the clients and the industry. In addition, they are suitable to operate in a typical rural environment having setbacks like connectivity problems and irregular power supply problems. The company’s solutions are aimed at Government departments, BFSI, and enterprises that require cash management solutions.
    • International Business: Fino Paytech provides Consultancy expertise to commercial banks, national governments, central banks, cooperative banks, microfinance institutions, insurance companies, and not-for-profit institutions. The company’s standout points are its Capabilities in the areas of technology strategy, architecture, planning, and implementation, and its expertise in channel management, product designing, and capacity building, which is achieved by training bank personnel and field agents in the acquisition and servicing of micro customers. Currently, Nigeria, Nepal, Bangladesh, Tanzania, and Mexico benefit from its tech-enabled, branchless banking solutions. The company’s core objective is to become a preferred partner in the execution of branchless banking solutions across the globe.


    Fino Paytech IPO Major Investors:

    S.NO. Name of the Investors No. of Shares % of shareholding
    1 International Finance Corporation 96,73,917 7.26%
    2 HAV3 Holdings (Mauritius) Limited 1,42,54,983 10.70%
    3 Intel Capital Corporation 70,94,013 5.32%
    4 Blackstone GPV Capital Partners (Mauritius) VI-B FDI Limited 1,87,80,518 14.10%
    5 L.I.C. of India 22,50,000 1.69%
    6 Indian Bank 22,50,000 1.69%
    7 Union Bank of India 45,00,000 3.38%
    8 ICICI Bank 99,19,118 7.44%
    9 ICICI Lombard General Insurance Company Limited 67,89,194 5.10%
    10 ICICI Prudential Life Insurance Company Ltd 1,13,28,854 8.50%
    11 Individuals/Public (Including Suspense A/c.) 1,40,60,851 10.55%
    12 Bharat Petroleum Corporation Limited 2,92,71,759 21.97%
    13 Exide Life Insurance Company Limited 28,32,213 2.13%
    14 Fino Trusteeship Services Ltd. 2,32,951 0.17%
      Total 13,32,38,371 100.00%


    Fino Paytech IPO Financial Analysis:

    Particulars FY-22 (in cr.) FY-21 (in cr.) YoY
    Revenue from Operations 18.66 19.27 -3.18%
    Other Income 822.98 3.07 26706.28%
    Cost of Goods Sold 11.53 9.96 15.74%
    Employee Cost 4.52 6.88 -34.3
    Other expenses 216.51 16.92 1179.79%
    EBITDA 609.07 -11.42
    EBITDA margin% 72.37% -51.13%  
    Depreciation 1.95 2.28 -14.4
    Interest 1.57 1.78 -12.09%
    Profit / (loss) before tax 605.55 -15.49
    Total tax 81.91 0.55
    Profit / (loss) After-tax 523.64 -16.04
    Profit / (loss) After-tax margin% 62.22% -71.80%