Findi Ltd Finalizes Acquisition of Tata Communications Payment Solutions Ltd.

Tata Communications has successfully completed the divestment of its wholly owned subsidiary, Tata Communications Payment Solutions Limited (TCPSL), to Transaction Solutions International (India) Pvt Ltd (TSI), a majority-owned subsidiary of Australian digital payments and financial services provider Findi (ASX: FND).

On 13th November 2024, Tata Communications had entered into a definitive agreement with Findi, to divest its 100% equity stake in TCPSL. The transaction has now been completed following the receipt of regulatory approval from the Reserve Bank of India (RBI), and the fulfilment of all conditions agreed between the parties under the relevant definitive agreement.

For Tata Communications, this move aligns with its strategic focus on high-growth areas such as network, cloud, cybersecurity, IoT, interactions, and media services, enabling the Company to sharpen its core capabilities while unlocking greater value.

For Findi, this acquisition marks a strategic expansion of its financial services ecosystem, enhancing its capabilities in digital payments and ATM operations. The acquisition immediately equips Findi with a White Label ATM platform and license, a Payments Switch, and a network of over 4,600 ATMs. Additionally, it enables Findi to deploy ATMs across its extensive network of 180,000+ merchants (under its FindiPay and BankIT brands).

Kabir Ahmed Shakir, CFO, Tata Communications, said: “This divestment marks a significant milestone in our journey to streamline our portfolio and focus on areas that drive long-term growth and innovation. We are confident that TSI is well-positioned to drive the next phase of growth for TCPSL and will further strengthen and scale this business, ensuring continued value for customers and stakeholders.”

Deepak Verma, MD and CEO, Findi , said: “The acquisition of Tata Communications Payment Solutions Ltd is a critical piece in our journey to become the most trusted enabler of financial empowerment for India’s underserved. TCPSL’s current ATM portfolio, white label license and Payment Switch give us immediate scale, as well as the ability to deploy ATMs to our merchant network, transforming them to a full stack financial hub, and empowering them to expand their services and better serve underbanked communities.”

Both Tata Communications and Findi are committed to ensuring a seamless transition for employees, customers, and partners. This milestone represents a win-win opportunity, unlocking new growth avenues for both companies and delivering greater value to shareholders

About Findi/TSI

A majority owned subsidiary of the Australian listed entity Findi (ASX: FND), TSI financially empowers the underbanked and the underserved through its pan India network of 60,000+ services locations that provide access to cash and payment services. Keeping Trust, Accessibility and Technology at its core, TSI brings financial inclusion to Indians without access to digital services in collaboration with 12 major Indian banks.

Aussie Fintech Findi Secures ₹500 Crore Deal from Union Bank of India to Roll Out 900 ATMs Across India

Findi Ltd (ASX: FND), through its majority-owned Indian subsidiary Transaction Solutions International (India) Pvt Ltd (TSI), has secured a significant contract with Union Bank of India to deploy 900 additional ATMs across the country. This strategic partnership, valued at approximately INR 500 crore in revenue and INR 200 crore in EBITDA over a 7+1 year period, further strengthens Findi’s position as India’s most capital-efficient and trusted Brown Label ATM (BLA) service provider.

Findi, through TSI, currently has over 9,000+ Brown Label ATMs in its portfolio, covering 13 major Indian banks, including SBI, HDFC Bank, and Central Bank of India. With the addition of Union Bank of India to its portfolio, Findi continues to bridge the financial services gap, providing critical banking infrastructure to underserved urban and rural communities across India. This expansion aligns with Findi’s broader vision to strengthen its ATM operations and enhance financial service accessibility across its extensive merchant network.

This partnership marks Findi’s third major deal this year. Recently, through TSI, Findi acquired BankIT, a digital payments service provider with over 129,000 merchant touchpoints, bringing its total merchant network to 180,000+. Additionally, Findi has secured RBI approval for the 100% acquisition of Tata Communications Payment Solutions Ltd, further consolidating its leadership in the financial services sector.

Deepak Verma, MD and CEO, Findi said, “We are excited to partner with Union Bank of India in this significant expansion of our ATM network. This partnership highlights the trust that leading Indian banks place in Findi’s expertise and efficiency as a partner. By expanding our footprint, we are enhancing banking access, particularly in semi-urban and rural areas, while driving financial inclusion and supporting India’s vision for a more connected, digital economy.”

The partnership with Union Bank of India aligns with Findi’s vision of building a comprehensive financial services marketplace, seamlessly integrating ATMs with its growing merchant network. This move will help in enabling millions of Indians to access essential banking services with greater ease and convenience.

Australian Fintech Findi Gets RBI Nod for Acquiring Tata Communications’ White Label ATM Business for ₹300 Cr

The Reserve Bank of India (RBI) has approved Tata Communications' sale of its 100% stake in Tata Communications Payment Solutions Limited (TCPSL) to the Australian fintech company Findi's Indian subsidiary, Transaction Solutions International (TSI).

The deal, announced in November 2024, is valued at Rs 330 crore (AUD 59.1 Mn), with an additional Rs 75 crore contingent on certain conditions.

Indicash, Tata Communications Payment Solutions Limited's White Label ATM network, was launched in June 2013. Indicash became India’s first-ever network of white label ATMs. It was in line with the RBI’s vision to accelerate growth and increase ATM penetration across the country. TCPSL currently owns and manages one of the largest networks of white label ATMs in the country.

White Label ATMs do not display the branding of any specific bank. Instead, they operate under the label of the non-bank entity.

This acquisition will significantly expand Findi's presence in India's financial services sector, particularly targeting the 'underbanked' population. It aligns with TSI's ambition to evolve into a full-fledged payments bank, leveraging its current network of over 7,500 ATMs.

Launched in 2005, TSI operates a brown label ATM business, partnering with 12 public and private sector banks (including State Bank of India, Central Bank of India, Punjab National Bank and HDFC Bank), and has experience of managing backend operations for 10,000+ white label ATMs over the last eight years. It also enables payment services through its network of 40,000+ merchants via the brand FindiPay (started in 2018).

For an uninitiated, White Label ATMs (WLAs) are owned and operated by non-bank entities, do not display any specific bank branding, and aim to increase ATM accessibility, especially in rural and semi-urban areas. While Brown Label ATMs (BLAs) are where a third-party service provider owns the ATM hardware and lease, while a sponsor bank provides cash management and network connectivity. These ATMs display the branding of the sponsor bank.

While the RBI does not directly regulate BLAs, it ensures that banks and service providers adhere to necessary regulations through contractual obligations. Banks like Axis and ICICI Bank often use BLAs to expand their ATM presence.