FINO PayTech Eyes Bank Launch

FINO PayTech, the India-based alternative finance firm, wants to grab one more investing round before launching its payments bank in the next six months, NDTV reported on Monday (Aug. 1).

The firm is fresh off a transaction where BPCL acquired a 21 percent stake in the payments firm, marking a first for the sector as the first direct stake taken by an oil marketing firm in a payments bank, according to the outlet. Traditionally, telecom and other tech outfits have made investments. That transaction was worth Rs. 250 crore, according to various news outlets.

FINO CEO Rishi Gupta stated: “We will have at least one more stake sale, after which we will proceed ahead to launching the bank,” and thus far, there has been no disclosure of just how big such an investment might be or where its source might lie. One option might be taking funding from a non-investment firm.

NDTV stated that firms in the space have been gaining investments in an effort to reduce foreign holdings of equity, which has been done through stake sales. FINO holders include IFC, HAV3 Holdings and The Blackstone Group.

Strategically speaking, FINO is eyeing the “non-digital” customer for its payments bank operations. The CEO told the outlet that conduits to new payments business will come amid BPCL’s web of retail outlets, with gas distribution businesses. Subsidies from the latter operations are deposited directly into bank accounts.