Copy: Private bank, Kotak Mahindra Bank on September 20 announced that it will do an equity investment of Rs 310 crore and get a 9.9 percent stake in KFin Technologies, subject to necessary approvals.
KFin provides a wide array of financial technology solutions across a broad spectrum of asset classes across mutual funds, alternatives, insurance and pension. KFin approximately services 25 out of the 44 mutual fund asset management companies.
These companies have over $148 billion in assets under management and 35 percent market share in equity. KFin has been chosen as the partner for four of the last five AMCs licensed by SEBI. It further services 23 mutual funds and pension managers across Asia excluding India including Malaysia, Philippines, Singapore and Hong Kong. KFin is also a leading player in the alternatives and private wealth management space.
It services over 300 AIF schemes launched by 100 plus managers, it services over 550 plus listed and 3,700 unlisted companies with over eight crore folios in India as a leading corporate registrar.
KFin also provides central record keeping services to the National Pension System in India and is also expanding in insurance transaction processing and fund administration.
Dipak Gupta, Joint Managing Director, Kotak Mahindra Bank said, “As a platform of choice for asset managers, investors and corporates, we believe KFin is well-positioned to continue growing its market position. At Kotak Mahindra Bank, this investment is in line with our stated strategy of making minority investments in businesses which are professionally managed and have deep client entrenchment. We are excited about the future growth prospects of the business and believe that an investment in KFin, with its significant franchise, will create long-term value for our stakeholders.”
M.V. Nair, Chairman, KFin Technologies said, “KFin is uniquely positioned to leverage its decades of deep capital markets expertise to deliver a differentiated value proposition to the financial markets in India and abroad. Kotak Mahindra Bank’s investment is testimony to the same. With Kotak Mahindra Bank’s support, along with the continued support of General Atlantic, an existing shareholder of KFin, we shall be able to achieve greater heights in our technology, business processes, leadership depth and governance.”
Sreekanth Nadella, CEO, KFin Technologies said, “Kotak Mahindra Bank’s shared vision to deliver outstanding value in a simple and straightforward manner, strongly complements KFin’s commitment to provide unparalleled client outcomes on demand. We believe this investment shall serve as a strong foundation for KFin to build next generation techfin solutions for financial infrastructure institutions. We are extremely proud to have been chosen by Kotak Mahindra Bank in the rapidly expanding financial infrastructure solutions market in India and abroad.”