Hyderabad-based Payswiff Allocates 72.12% Stake to Cholamandalam Investments
Deal Overview
Hyderabad-based fintech startup Payswiff has allotted a 72.12% equity stake to Cholamandalam Investments and Finance Company (CIFC). According to a regulatory filing, the deal was formalized through a Share Purchase Agreement and Shareholders’ Agreement signed on January 17th. The acquisition, valued at ₹450 crore, positions Cholamandalam Investments to take a majority stake in the payment solutions provider.
About Payswiff
Founded in 2013 by Prabhu Ram, Priti Shah, Anil Bharadwaj, Ravi, Krishna, and Maulik Shah, Payswiff (previously known as Paynear) is an omnichannel payment transaction solution provider based in Hyderabad. The company enables businesses to accept payments online, in-store, and on the go through mPOS and POS solutions. Payswiff’s platform supports various payment methods, including cash on delivery, and offers e-commerce solutions that simplify commercial transactions for merchants.
Over the years, Payswiff has formed partnerships with major players such as PhonePe, Mastercard, Visa, and RuPay. The company has deployed 3 lakh devices across India and processed over 7 million transactions monthly. With a global presence in seven locations and a network of over 45 partner banks, Payswiff has grown into a robust organization with a team of over 330 employees. Their latest product offering, PayswiffNXT, builds on the success of their flagship product, Payswiff ONE.
Cholamandalam’s Strategic Investment
Cholamandalam Investments and Finance Company, a leading Non-banking Financial Company (NBFC) under the Murugappa Group, has announced plans to acquire the 72.12% equity stake in Payswiff at ₹450 crore. The investment will be made at a price of ₹1,622.66 per share on a fully diluted basis, potentially occurring in one or more tranches.
In the fiscal year 2020-21, Payswiff recorded a turnover of ₹210.58 crores, marking a 218.34% increase from the previous year. CIFC officials stated that the acquisition aligns with their long-term strategy to expand in the lending ecosystem, particularly within the SME segment. Integrating Payswiff into their operations is expected to add significant value to the existing Chola ecosystem, particularly in enhancing their technological capabilities within the SME space.