Financial Information Networks and Operation (FINO),  a micro banking firm addressing the bottom of pyramid customers is planning to raise Rs 100 crore via private equity. The firm does not plan to raise any money through debt in this round. This will be the company’s second round of funding.

The funds will be raised through fresh issue of shares as the company does not plan to dilute equity but add equity to the company. It currently has a paid up capital of Rs 65 crores.

"We will be adding more equity to the company and not diluting it", said Rishi Gupta, CFO and Director, FINO. It's international institutional investors include the International Finance Corporation, Intel Capital and Legatum. 

FINO provides transactional systems to the unbanked sector and also provides enrollment for customer acquisition. FINO provides services to banks, microfinance institutions and insurance companies. FINO’s customers include 10 banks, 8 MFI’s, 3 insurance companies and 3 government entities. 

The firm is already in talks with various investors and the fundraising is expected to be completed in a few months.The proceeds of the funds will be used towards the firm’s existing businesses as well as for its growth.  “We will raise the money for meeting our in house requirements” said Gupta.


Currently, there are about 10 entities that have invested in FINO. It has international investors as well as investors from the public and private sectors. While the international investors hold 40% stake in FINO, the public and the private sector investors hold 30% stakes each.

FINO, which turned cashflows positive from this quarter, is expecting a 3-4 times growth in revenues as well as in cashflows this year. The firm claims that it has a huge order base.“We have orders which can take us for the next two years” said Rishi Gupta.


Talking about the firm's product’s recent launch, Gupta said “we have recently launched FINO Tijori, which is a micro deposit machine which will be installed in the multiple locations all over the country.” FINO Tijori will be a no frills account with the host Bank.

FINO’s private sector investors include ICICI bank, ICICI Lombard and Institute for Financial Management and Research (IFMR). The public sector investors include Life Insurance Corporation of India (LIC), Union Bank, Corporation Bank and Indian Bank. The International Finance Corporation, Intel Capital and Legatum are the international investors in the company.


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