KFintech to invest in FPSIPL to enter Account Aggregator business

The company has a wholly owned subsidiary FPSIPL, FinSec AA Solutions Pvt Ltd, India’s first Account Aggregator, licensed by the Reserve Bank of India (RBI).

The partnership will help KFintech venture into TSP and AA business as it looks to diversify beyond its current offerings across asset classes in the financial services ecosystem.

According to the statement, MoneyOne, the brand of FPSIPL, is in the business of providing technology solutions for the BFSI or banking, financial services and insurance sector. Their primary offering, as a TSP, is to provide a platform for enabling data sharing, data governance and analysis, and related solutions to the clientele in the BFSI domain.

OneMoney, the brand of FPSIPL’s wholly owned subsidiary, is India's first Account Aggregator (AA), with an NBFC AA license from the RBI. OneMoney is a leading player with over 45% market share in a competitive and emerging Account Aggregator domain, the statement said.

After this investment, KFin Technologies will own 25.63% of the post-issue equity share capital of FPSIPL.

KFintech can acquire additional equity share capital of FPSIPL, taking its aggregate shareholding in FPSIPL to 75.01%, subject to the satisfaction of customary closing conditions and receipt of regulatory approvals.

KFin Technologies MD and CEO Sreekanth Nadella said, “As a scaled multi-asset global solution provider for fund management, we are focusing on expanding our portfolio of products and solutions to foster the financialization of India’s economy.”

The company has an extensive reach of over 5000+ clients locally and globally being serviced through at-scale and innovative technology solutions, he noted.

“Combined with the proven capabilities of the market leader in Account Aggregation – OneMoney, we are excited at the prospect to deliver several best in class fintech solutions across the sectors of Lending, Asset & Wealth Management, administration & onboarding solutions amongst several others,” he said.

FPSIPL Founder and CEO Krishna Prasad Atluri said, “This investment is highly synergistic and shall enable FPSIPL to leverage KFintech’s technological finesse to deliver world-class and agile TSP solutions, high-end data analytics and best-in-class AA solutions and Open Banking solutions to the markets in India and abroad, especially to serve the underserved and unserved segments.”

This acquisition is expected to enable KFin Technologies to leverage its technology competence to deliver best-in-class TSP solutions to BFSI players and new-age start-ups and scale up AA value propositions beyond lending as a used case to wealth management for retail consumers, the statement said.