Spice Mobility Ltd has decided to acquire an additional 10.78% stake in subsidiary Spice Digital Ltd from investor MediaTek Singapore Pte Ltd, the company informed the BSE on Tuesday.
The deal value is Rs 34.56 crore ($5.25 million), the filing shows. That's a fraction of the $20 million the chip manufacturer invested in Spice Digital in 2011.
Following the transaction, Spice Mobility's stake in Spice Digital will increase from 89.19% to 99.97%. The deal is expected to be complete by the end of next month.
The acquisition comes just a month after Spice Digital received final approval from the Reserve Bank of India to process bill payments under the Bharat Bill Payment System (BBPS). It had received an in-principle nod in May last year.
The BBPS, through its centralised bill payment system, allows users to use a single website or outlet to pay all their monthly bills. Only defined, licensed participants can operate and transact under BBPS.
Spice Digital also has a semi-closed prepaid instrument licence, and runs a digital wallet service 'Spice Money'.
According to the BSE filing, Spice Digital’s turnover for FY17 was Rs 182 crore compared to Rs 162 crore in FY16. In FY15, its turnover stood at Rs 104 crore.