During Monday’s trading session, the share price of a financial technology firm that offers B2B and B2B2C solutions moved up by 4.6 percent to Rs. 144 on NSE, after the company entered into a a binding agreement to acquire a 100 percent stake in Payworld Digital Services.
With a market cap of Rs. 348 crores, at 11:07 a.m., the shares of RNFI Services Limited were trading in the green at Rs. 139.45, up by 1.3 percent, compared to its previous closing price of Rs. 137.7.
What’s the news:
RNFI Services Limited entered into a binding offer to acquire a 100 percent stake in Payworld Digital Services Private Limited, subject to the completion of satisfactory due diligence and other customary closing conditions.
According to the latest regulatory filings with the NSE, RNFI aims to bridge the gap between traditional banking services and underserved communities through innovative technology.
The acquisition of Payworld Digital Services will enhance RNFI’s ability to extend its reach and provide reliable, customer-centric solutions that meet the evolving needs of the digital economy, thereby making a meaningful impact.
Additionally, RNFI has received approval from the Reserve Bank of India (RBI) for this acquisition.
The cost of the acquisition and the price per share will be determined based on the findings from the due diligence process being conducted on Payworld Digital Services.
About the Target Entity:
Incorporated in 2004, Payworld Digital Services Private Limited is engaged in the digital financial services platform in India.
Its wholly-owned subsidiary, Smart Payment Solutions Private Limited, holds a Prepaid Payment Instrument (PPI) license from the Reserve Bank of India, along with other essential licenses and approvals that facilitate the issuance of prepaid cards and wallets.
These tools allow users to load funds for secure digital payments, bill payments, and mobile recharges.
In the first half of FY25, Payworld Digital Services reported an active agent base of 66,000 and achieved a turnover of Rs. 60.76 crores in FY24, with Rs. 25.67 crores recorded in H1 FY25.
Previous News:
On 19th September, RNFI Services Limited was appointed as the rental service provider for Point of Sale (POS)/Device for Muthoot Microfin Limited.
According to the filings, the projected volume is 2,000 orders, starting with an initial procurement of 500 units. The remaining units will be acquired gradually, depending on the evaluation of product performance.
Financials:
Financially, the company experienced a decline in its revenue from operations, showing a year-on-year fall of 12.4 percent from Rs. 1,067 crores in FY23 to Rs. 935 crores in FY24.
In contrast, its net profit increased during the same period from Rs. 5 crores to Rs. 10 crores, indicating a growth of 100 percent YoY.
About the company:
RNFI Services Private Limited is a Business Correspondent of various Banks and Payment Banks.
The company is engaged in the business of Domestic Money Transfer (DMT), IMPS, Aadhar Enabled Payment System (AEPS), mobile recharges, railway and air tickets, cash management services, EMI collection services and other incidental business through its merchants (namely retailers, distributors, partners and super distributors) network across India.
Written by Shivani Singh
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