Fino Paytech, the promoter of Fino Payments Bank, is a banking technology firm that provides financial services to its customers. The company has the vision to become the one-stop destination for all financial activities of its clients. The fintech firm is successfully running Fino Payments Bank and also has applied for IPO a few days back.
Let’s go through the decade-old journey of Fino Paytech.
Promising Beginning of Fino
Founded on July 13, 2006, Fino Paytech, an institutional investor-driven financial firm, has its headquarter in Mumbai with various offices across the nation. The firm has established itself as the technology solution provider for banks, small finance firms, government units, and insurance startups. As an alternate banking channel, Fino Paytech enables seamless end-to-end customer sourcing and servicing.
Fino Payments Bank, a product of Fino Paytech, has recorded exponential growth and applied the necessary measures to tackle the Covid emergency.
The bank, founded in 2017, became profitable in the fiscal year 2020. It created history by becoming the only independent profitable payments bank operating under Reserve Bank of India(RBI) rules. Fino bank has provided the banking infrastructure, especially in rural areas. The firm claims to process worth Rs 1 lakh crore transactions annually.
Fino Bank, founded by Rishi Gupta, saw a downfall of 80 percent in its monthly remittance operations due to covid lockdowns. Later, it recovered its business. Now, Fino claims that it has restored its business to 40% of the pre-lockdown level. The firm targets to achieve the pre lockdown level in 2-3 coming quarters. The payments bank was processing Rs 4000-4,500 crore monthly remittance before covid lockdown.
Fino Payments Bank’s Further Growth & IPO Filing
The remittance business contributes 45% to the overall operations of Fino Payments Bank, as stated by Fino Paytech. Currently, remittance operations are down by 35% from Rs 10,000 crore in the pre lockdown. In the coming weeks, the bank is expected to recover at a fast pace due to the lockdown restrictions and nationwide business openings.
Corona wave hit the payments bank business at a time when it became profitable in Q4 of FY2020. Fino handled micro and macro businesses challenges very well to make notable progress.
During the fiscal year 2020, Fino Payments bank recorded a whopping revenue of Rs 689 crore that is around 86 percent more than its revenue of Rs 370 crore in FY2019. The bank started its operations in 217 with 1 million transactions of Rs 1500 crore per month.
Currently, the payments bank has over 3000 employees and has a partnership with 10 other banks. The bank has a huge network of 15000 branches across India with 4.5 lakh merchant points. It has a strong presence in 550 districts of India.
On August 1, 2021, Fino Payments Bank (FPBL) has filed the draft documents with SEBI for an initial public offering (IPO). As per the draft red herring prospectus (DRHP) paper filing report, it consists of a fresh issue of equity shares up to Rs 300 crore and an offer for sale (OFS) of up to 1.56 crore of equity shares. As per the market report, the payments bank is looking to raise Rs 1300 crore from its IPO.