Kotak Mahindra Bank Limited (KMBL) today announced that it has agreed to make an equity investment in KFin Technologies (KFin or the Company), a leading investor and issuer servicing platform. KMBL shall acquire, subject to necessary approvals, a 9.9 percent stake in KFin by investing Rs. 310 crore as primary infusion in the Company.
KFin provides a wide array of financial technology solutions across a broad spectrum of asset classes spanning mutual funds, alternatives, insurance, and pension. It serves 25 out of the 44 Indian Mutual Fund AMCs, which have over $148 billion in AUM1 and 35 percent market share in equity AUM1 ( As of 31st August, 2021-up from 27 percent in March 20192- as of 31st March, 2019).
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.”
Sreekanth Nadella, CEO, KFin Technologies said, “We believe this investment shall serve as a strong foundation for KFin to build next generation techfin solutions for financial infrastructure institutions.”