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December 08, 2009

Deal Alert: HSBC PE, existing investors invest Rs.70-Cr in FINO

Edited extracts from the Press Release:

HSBC Private Equity and existing shareholders Intel Capital and IFC have invested Rs. 70 crores into Financial Information Network and Operations (FINO), a company that provides technology solutions to financial services firms operating in rural areas. As part of the deal, HSBC PE and Intel Capital have purchased the entire stake held by existing investor Legatum Ventures. Avendus Capital was the exclusive financial advisor for the transaction.

James Savage, Investment Director of HPEA in Hong Kong said, “FINO is a market leader and pioneer in providing technology solutions to financial institutions for reaching out to the under-served and unbanked sector in India. With more than 135 million households unbanked, the market has potential for exponential growth. We believe that FINO is well positioned to benefit from this opportunity.”

Alok Gupta, Investment Director of HSBC Private Equity Advisors (India) Limited in Mumbai said, “Financial Inclusion is a key component of our corporate sustainability initiatives and includes areas such as education, livelihoods and microfinance. We intend to work with FINO to further develop opportunities in financial inclusion, particularly with corporate agencies and business entities.”

“Fino is pioneering the use of technology in the banking industry, and we expect them to become a widely used platform for rural banking and NREGA payments,” said Sudheer Kuppam, Managing Director, Intel Capital India, Japan, Australasia & South-East Asia. “The FINO management team has demonstrated great operational skills in building a scalable business model, which works very well in the highly complex and dispersed Indian market environment. We believe FINO's technology and operational skills will be relevant in other developing markets where similar demographics exist, and we expect to support the company in its overseas expansion plans.”

From the Venture Intelligence Private Equity Deal Database : In January 2007, FINO had raised $20 million from IFC, Intel Capital, IFMR Trust, Legatum and other investors.