Niyogin, a publicly listed fintech startup, today announced the acquisition of 51% strategic stake in iServeU for Rs 592 Mn (US$ 8 Mn) in a cash plus stock deal.
iServeU Technology (iServeU) is a Full Stack FinTech startup that has built an innovative, scalable, and inclusive payments infrastructure to reach the underbanked with a focus on rural India by enabling small village merchants to serve local communities. iServeU has seen rapid adoption of its platform and has been processing transactions worth ~US$500m annually on their platform. Equirus Capital acted as the exclusive financial advisor to iServeU for this transaction.
The transactions and platform adoption have accelerated through the lockdown caused by the COVID-19 pandemic, as rural local communities rapidly moved towards digital platforms for their financial needs.
Welcoming the strategic participation, Debiprasad Sarangi, Co-Founder and Chief Executive Officer, iServeU Technologies said, “We see Niyogin as a long-term strategic partner and are excited about what Niyogin and iServeU can deliver jointly to rural customers and micro-businesses, transform communities, leverage technology to empower people and accelerate much needed financial inclusion in India. The capital infusion will be used to scale and accelerate growth with expanding footprint deeper into rural India and new product innovation.”
Ajit Deshmukh, Managing Director & Head of Investment Banking at Equirus Capital said, “This transaction creates unique synergistic opportunities for both iServeU and Niyogin, leveraging their last mile reach, complementarity of product suite, and rich fintech experience, to create novel value propositions for their customers, collectively. With financial inclusion at the heart of their vision, this transaction will help include the next billion users, eliminating common challenges of transaction costs and reach”
The acquisition is subject to certain closing conditions and regulatory approvals.