NEW DELHI: Kotak Mahindra Bank has taken a 9.98% stake in Hyderabad-based fintech solution provider KFin Technologies Private Limited for Rs 310 crore. The management of Kotak Mahindra Bank says the acquisition of stake is purely for the purpose of investment, and there would be no operational synergy between the two after the acquisition.
Dipak Gupta, Joint Managing Director, Kotak Mahindra Bank, said in a statement the investment is in line with the bank’s stated strategy of making minority investments in businesses that are professionally managed and have deep client entrenchment.
KFin is an investor and issuer services financial technology company that provides Registrar and Transfer Agency (RTA), technology & services to mutual funds, alternative investment funds, wealth managers and corporates. KFin serves 25 out of the 44 Indian Mutual Fund AMCs, which have over $148 billion in AUM and 35% market share in equity AUM.
MV Nair, Chairman, KFin Technologies, said that with Kotak Mahindra Bank’s support, along with the continued support of General Atlantic, an existing shareholder of KFin, the company will be able to achieve greater heights in our technology, business processes, leadership depth and governance.”