The shares of a small cap finance company engaged in providing Supply Chain Finance and Digital Lending solutions gained as much as 5.5% in today’s trade after it announced that it will acquire a 74% stake in a UAE-based Fintech Company.
Share Price Movement
The shares of Veefin Solutions Ltd, with a market capitalization of Rs 1,152 Crores, closed at Rs 488 per share which was 4.3% higher than its previous close of Rs 468. It generated a return of 25% this past year, and an impressive return of 392% in the past 5 years.
Acquisition Details
Veefin Solutions Ltd through its subsidiary Estorifi Solutions Ltd acquired 74% stake consisting of 74 Equity shares with face value of AED 1,000 each of Fintech Innovations International DMCC (TradeAssets), a Dubai-based company specializing in the digital trading of trade finance assets.
This acquisition marks a significant step in the Group’s mission to become a one-stop solution for the financial needs of banks and financial institutions by enhancing their ability to manage liquidity, distribute risk, and access global markets. This also marks Veefin’s fifth acquisition in the past eight months, making the Veefin Group a total of ten companies.
Management Commentary
Raja Debnath, Chairperson, Co-Founder & CEO, Veefin Group said that the acquisition marks a significant milestone for not only Veefin Group but also for the entire financial technology sector. By integrating TradeAssets into their ecosystem, Veefin Solutions can offer even more comprehensive solutions to global financial institutions. He added that this move aligns with their goal to provide an integrated platform that covers all aspects of trade finance, from origination to distribution and beyond.
Indian FinTech Industry
India is among the fastest growing FinTech Markets in the world. It is estimated to be around USD 110 billion as of 2024, and by 2029, it is projected to reach an impressive USD 420 billion at a CAGR of 31 percent. India ranks third globally in terms of the highest number of Fintech entities, consisting over 9000 fintech entities.
About Veefin Group
Veefin Group addresses every aspect of optimizing Working Capital, by offering solutions across end-to-end digital Supply Chain Finance, Digital identity verification and automated financial statement analysis, debt securitization, cash management, trade finance, automated Accounts Receivable (AR) & Accounts Payable (AP) and software consulting and services by deploying innovative, agile & scalable technology.
Written By Adhvaitha Nayani
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