In Friday’s trading session, the shares of one of the leading IT companies in India specialised in providing SCF technology and Digital Lending Solutions to their customers are in focus after acquiring 50 percent stake in Walnut AI Pte. Ltd to expand and strengthen its business.
Price action
With a market capitalization of 1,547.27 Crores on Friday, the shares of Veefin Solutions Ltd jumped up by 2 percent making a high of Rs 700 compared to its previous closing price of Rs 685.45.
What happened
Veefin Solutions Ltd a prominent IT company specialised in providing SCF Technology, through its subsidiary Estorifi Solutions Private Limited has acquired 50% Stake in Walnut AI Pte. Ltd on December 12, 2024.
The acquisition involved the purchase of 27,778 equity shares or 50 percent stake for a consideration of SGD 9.54 each in (Rs. 600.47 per share) with the overall acquisition valued at USD 2 million.
The main objective of the acquisition is for getting access to the large client database across multiple geographies and generate additional revenue, along with Combining the resources and expertise of both entities to create new opportunities for growth and innovation.
Walnut, AI Pte. Ltd, is an information technology company based in Singapore and Walmart has had an impressive Turnover in the last three years with an estimated turnover of SGD 1.2 million in 2024.
About the company
Veefin Solutions Ltd is a prominent IT company specialised in providing SCF Technology, Digital Lending Solutions and end-to-end product stack to the customers which unifies various requirements into a single platform.
The company’s solution comprises components such as customer onboarding, underwriting and transaction management, which can be seamlessly integrated with the bank’s core banking system.
Veefin aims to streamline financial processes, enhance decision-making, and promote financial inclusion., It operates with a vision to revolutionize the financial services industry and drive sustainable growth for its stakeholders.
The Company has been offering Digital Lending and SupplyChain Finance (SCF) technology product solutions to a wide range of clients globally which includes Banks, Non-Banking Financial Institutions, FinTech, Marketplaces, Corporates as well as Governments.
Financials
The company’s revenue rose by 111 percent from Rs 9 crore to Rs 19 crore in H1FY24-25. Meanwhile, Net profit rose by 400 percent from Rs 1 crores to Rs 4 crore during the same period.
Key Financial ratios
Veefin Solutions Ltd has a Return on Equity (RoE) of 2.5 percent and a Return on Capital Employed (RoCE) of 3.24 percent. Furthermore, the company’s debt-to-equity ratio is 0.02.
Written by Sridhar
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