New Delhi: Niyogin Fintech, which provides the platform for collateral free credit to MSME’s, said it has acquired 50.1 per cent stake in Moneyfront for Rs 12 crore.
“Niyogin Fintech Ltd has announced that it had entered into an agreement to acquire 50.1 per cent share in Moneyfront for Rs 12 crore,” the company said in a statement.
Moneyfront, a subsidiary of InvestDirect Capital Services, provides the platform to help clients invest in mutual funds and other fixed-income instruments.
The deal will be a non-cash equity swap transaction, the statement said, adding that investments from Niyogin, as part of the deal, will be used for acceleration of growth and business requirements.
“We are excited to partner with Moneyfront where I believe that the combination of wealth solutions and talent, which Moneyfront brings to the table will enable deepening of our existing client relationships while being value accretive to our shareholders,” Niyogin Chairman and Co-Founder Amit Rajpal said.
The partnership will help Moneyfront accelerate its growth by leveraging Niyogin’s distribution channel and state of the art technology platform while allowing Niyogin to take a significant step forward in building its knowledge and capabilities within the wealth solutions domain, the statement said.
Last year, Niyogin Fintech Ltd raised Rs 235 crore by preferential issue of shares to a group of marquee investors including Ward Ferry, Lucky Investment Managers, Sabre Capital, Alchemy Capital and Alchemy India Long Term Fund amongst others.