Cholamandalam Investment Company acquires majority stake in payment gateway PaySwiff Technologies
- ByTejika Bajaj | January 19, 2022
Cholamandalam Investment and Finance Company has recently announced the acquisition of a majority stake in the online payment gateway PaySwiff Technologies for a sum of INR 450 crores. With this acquisition, the former will now own 72.12 percent stake in the payment gateway platform.
Cholamandalam will spend INR 4,10,00,04, 230 in acquiring 25,26,718 shares at a price of INR 1622.66 per share from existing investors and founders. The investment company will also spend INR 4,00,00,293 in subscribing to 2,46,509 shares at the above stated price per share.
The investment and finance company has signed a shareholders’ agreement and a Share Purchase Agreement with PaySwiff, its founders and other existing shareholders to implement the acquisition deal. With this transaction, the payment gateway will now become a subsidiary of Cholamandalam.
The official statement of the company stated, “The proposed acquisition is in line with the long-term strategy of the company to explore and expand in the entire lending ecosystem model particularly in the SME segment. Payswiff being a company forming part of the digital and technology ecosystem in the SME segment is expected to add value to the existing Chola ecosystem. This investment will provide a platform to build new age SME offering at scale, access to the SME network across the country and an opportunity to be one of the preferred SME financiers.”
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