Kotak Mahindra Bank Ltd (KMBL) on Monday said it will infuse Rs 310 crore ($42 million) for a 9.9% stake in KFin Technologies.
The private sector lender is looking to complete the acquisition by the end of October, Kotak Mahindra Bank said in a stock exchange filing.
Incorporated in 2017, KFin provides fintech solutions to asset classes across mutual funds, alternatives, insurance, and pension. It serves 25 of the 44 Indian mutual fund firms.
The company said it provides registrar and transfer agency services to mutual funds, alternative investment funds, wealth managers, and corporates. It also provides back-office operations and data processing services, apart from being a central record-keeping agency under the National Pension System.
“At Kotak Mahindra Bank, this investment is in line with our stated strategy of making minority investments in businesses that are professionally managed and have deep client entrenchment,” Dipak Gupta, joint managing director of Kotak Mahindra Bank, said in a press statement.
KFin has subsidiaries incorporated in Malaysia and Bahrain. It had a turnover of Rs 481 crore for FY21, Rs 450 crore for FY20, and Rs 162 crore for FY19.
The company is majority owned by funds managed by growth equity firm General Atlantic which had over $78 billion in assets under management inclusive of all products as of June 30, 2021.