The Reserve Bank of India has granted approval for Tata Communications to proceed with the full sale of Tata Communications Payment Solutions Limited (TCPSL), its wholly-owned subsidiary, to Findi, an Australian fintech firm. This deal, valued at ₹405 crore (approximately $48.3 million), marks a significant step for both companies involved.
Findi confirmed the acquisition will be executed through its majority-owned Indian subsidiary, Transaction Solutions International India. Upon completion, Findi’s brown label ATM network across India will expand dramatically from 7,500 units to beyond 12,000, enhancing their footprint well within the financial services ecosystem.
Tata Communications has played a pivotal role as the first company to introduce brown label ATMs in India, operating under the Indicash brand. With Findi’s successful entry, operations under the FindiPay brand, and this strategic acquisition, the competition within the ATM sector is set to intensify.
The Reserve Bank’s nod for this purchase came after Findi raised its offer by ₹75 crore (around $9 million), increasing the initial offer from ₹330 crore (approximately $39.5 million) announced back in November 2024. Reflecting on this sizable shift, Deepak Verma, CEO of Findi, stated, "This acquisition expands our ATM network to over 12,000 and strengthens our position in the financial services sector. It also enhances our merchant network and digital payment capabilities, accelerating financial inclusion for the underbanked."
The integration will involve more than 4,600 operational Indicash ATMs and the deployment of around 3,000 additional ATMs, positioning Findi as one of the largest ATM operators across Asia, combining both brown and white label categories.
This acquisition is not just about numbers; it has broader ambitions. Findi’s domestic arm has effectively operated 7,500 ATMs partnered with major Indian banks, including State Bank of India (SBI), Punjab National Bank (PNB), and HDFC Bank, over the past eight years. With the expansion, the strategic goal includes enhancing services for the underbanked, aligning with India's financial outreach objectives.
Findi takes pride not only in bolstering its ATM infrastructure but also targeting the pressing need for financial inclusivity. The acquisition feeds directly back to the RBI's vision for increasing ATM penetration and diversifying banking access across various socio-economic strata. "This acquisition is a cornerstone in our strategy to improve financial inclusion in India," Verma emphasized, underpinning the sentiment of effectively transitioning the ATM business to serve broader market needs.
The market reflects positive sentiment toward these developments as shares of Tata Communications Ltd were reported trading 1.8% higher on February 4 following the RBI's announcement. It exemplifies confidence among investors and stakeholders involved.
Interestingly, this is not Findi’s first move to solidify its place within the Indian financial market this year, as it previously acquired Bankit, another digital payments service provider, showcasing its intent to create a comprehensive service ecosystem.
Through this new acquisition, TCPSL is set to exit the ATM business, allowing it to refocus its endeavors on other financial services, dovetailing with measures to expand market capabilities. It also signifies the end of an era for Tata Communications, which has transitioned its focus from ATM operations since its inception.
With these significant realignments happening within the ATM business sphere, customers can expect improved access to cash and financial services, reflecting the efforts to bridge the gap for the unbanked populations across urban and rural India.
Conclusively, this acquisition signifies pivotal developments for both Tata Communications and Findi, indicating potential future innovations and heightened competition for the ATM and broader financial services sector within India.