Fino Paytech Limited Unlisted Shares

Overview of Fino Paytech

Fino Paytech, founded on July 13, 2006, is headquartered at Mumbai, with offices across India. It is a business and banking technology platform combined with an extensive services delivery channel, whose vision is to fulfill every financial service need of its customers, and thus become their universally preferred choice.

Fino Paytech is an institutional investor-driven company owned by international and Indian investors. The company has emerged as a thought leader, innovator, and implementer of technology solutions for institutions like banks, micro-finance institutions, government entities, and insurance companies. As an alternate banking channel, Fino Paytech enables seamless end-to-end customer sourcing and servicing.

What Company do?

A> Customer Enrolment Solutions

(i) Fino Paytech has developed applications that can be used to effectively acquire micro customers.

(ii) Unlike a banking model that requires customers to physically visit a branch, Fino Paytech’s Customer Acquisition System allows customers to be enrolled/acquired at the convenience of their doorstep. This process is quicker and simpler for customers as well as banks, while at the same time, it retains the core essence of banking as well.

(iii) An enrolment station typically consists of a laptop connected to a web camera, fingerprint scanner and a signature pad (optional).

B> Hardware Solutions

(i) Fino Paytech provides a full suite of biometric products for enrolment, storage, and verification, while also maintaining all back-end system elements – thus enabling them to develop and offer exclusive financial inclusion applications.

(ii) This technology enables Fino Paytech’s clients to offer a rich variety of simple and accessible solutions with a whole range of products – including handheld devices, biometric smart cards, backend switches, and micro deposit machines.

C> Operation Solutions

The operations solutions team manages data messaging to churn out the required information for day-to-day planning and management of operations. The principals may either utilize some of the pre-designed reports by Fino Paytech or ask for customized reports.

D> Services

(i) Consultancy Service

(ii) Financial Literacy

To whom they Serve?

A> Banks

(i) Joint Liability Group Loans– In the banking system, JLG is a lending model that enables a group of individuals (usually five) to take loans for income generating activity by forming a group, wherein group members guarantee each others’ loans. FINO has been doing JLG lending on behalf of various banking partners and on it own books since 2008. FINO’s solution provides a platform to source and service customers for group-based microfinance lending.

(ii) Recurring Deposit- Recurring deposits are an ideal way to invest small amounts of money every month and end up with a large kitty on maturity. Fino Paytech is the first and only entity to provide a recurring deposit for micro customers, which becomes a committed savings product for this customer segment.

(iii) Money Transfer- They provide a fast, reliable and convenient platform to transfer money domestically from the remitter to the beneficiary via Intra-bank (home bank), Inter-bank (NEFT), and the IMPS facility.

B> Government

(i) MNREGA- The Fino Paytech provides cards which functions on a pan-India basis. The cards can be used to make domestic payments across 50,000+ villages in the country. The usage of biometric technology has largely reduced the possibilities and instances of misuse and malpractices as far as payments to citizens are concerned.

(ii) Social Security Schemes– Many State Governments are using Fino Paytech architecture, based on fingerprint usage as validation, across the country to deliver social security schemes to citizens. This has lead to substantial savings in terms of resources for the government.

C> Insurance

Fino Paytech’s cutting-edge technological solution has become a game changer in India’s health micro-insurance sector. The solution empowers insurance companies to reach out to customers at the bottom of the pyramid and cater to their particular financial needs, while at the same time maintain financial viability as well.

Rashtriya Swasthya Bima Yojana (RSBY) is a cashless national health insurance welfare scheme introduced by the Government of India. The objective of this scheme is to protect Below Poverty Line (BPL) households from the financial liabilities arising from health setbacks involving hospitalization.

Fact: Fino Paytech has enrolled over 25 million families under the RSBY.

Fino Paytech Limited Unlisted Shares Details:

Total Available Shares:	1000
Face Value:	₹ 10 Per Equity Share
ISIN:	INE511I01011
Lot Size:	100-500 Shares
Current Unlisted Share Price:	₹ 115 Per Equity Share

Promoters And Management:

1. Mr. Ashok Kini -Non-executive Chairman & Independent Director. 2. Dr. Anjana Grewal-Independent Director 3. Mr. Amit Jain-Nominee Director of Blackstone 4. Mr. Alok Gupta- Nominee Director of Hav 3 Holdings (Mauritius) Ltd. 5. Mr. Pramod Sharma -Nominee Director of Bharat Petroleum Corporation Limited

Company Business:

FINO Paytech Ltd. offers a banking and payments system that uses smart cards and agent-operated mobile point-of-transaction terminals to facilitate reliable, low-cost financial transactions between institutions and customers. With this system, FINO Paytech Ltd. addresses a number of challenges that financial institutions face when serving low-income customers in particular, including illiteracy, information asymmetry, inadequate infrastructure, security, and—highly important—high cost relative to transaction size. The system enables users to overcome these barriers to achieve financial sustainability and scale in serving under-banked populations. Although the Revenue model varies by product and by the client, FINO Paytech Ltd. generally charges the financial institution ongoing rental fees for space on their back-end system and for point-of-transaction terminals, annual maintenance fees for the terminals, and new card issuance fees. Some institutions may opt to buy point-of-transaction terminals as well. Customers do not have to pay for any services except for the remittance product—for which they pay 20 rupees, less than $.50, directly to FINO Paytech Ltd. in exchange for remitting up to 10,000 rupees in a single transaction. They have recently got a payment bank license from RBI which will also add up to the revenue. This year in 2018, they were in loss of 67 Cr from Payment bank operations.

Shareholding Pattern:

Top 13 Shareholders in Fino Paytech Limited Shares:

Sr.no	Name of the Shareholder	No. of Shares	% of Holding
1	Bharat Petroleum Corporation Limited	28435423	28.89%
2	ICICI Prudential Life Insurance Company Limited	11328854	11.51%
3	Blackstone GPV Capital Partners (Mauritius)	7512207	7.63%
4	HAV 3 Holdings (Mauritius) Limited	7456993	7.58%
5	International Finance Corporation	6569567	6.68%
6	ICICI Bank Limited	57,50,000	5.84%
7	ICICI Lombard General Insurance Company Limited	5289194	5.37%
8	Intel Capital Corporation	4433449	4.50%
9	Exide Life Insurance Company Limited	2832213	2.83%
10	Life Insurance Corporation of India	22,50,000	2.29%
11	Indian Bank	22,50,000	2.29%
12	Union Bank	22,50,000	2.29%
13	Corporation Bank	22,50,000	2.29%

During the 2018, pursuant to the ESOP Scheme of the Company the Company had allotted 22,17,220 Equity Shares of Rs. 10 each to the employees who had exercised their ESOPs. As a result, the issued and paid-up share capital of the Company had increased from Rs. 96,19,51,410/- to Rs. 98,41,23,610/-

Financials of Fino Paytech Limited Unlisted Shares:

Year	Revenue( Cr)	PBT ( Cr)	PAT ( Cr)	EPS
2017	335	-91	-88	-8.97959
2018	376	-176	-167	-17.0408

Discussion on Fino Paytech Limited Unlisted Shares:

Buzz News: Fino Paytech invests in CityCash

https://investorzone.in/trending-news/fino-paytech-invests-in-citycash

As per Management:

Since its launch, the bank has opened 5 lakh customer accounts and deposit has grown up to Rs 100 crore, he said.

Signaling a shift in strategy, Gupta said it will focus on fee-earning transactions rather than the opening of bank accounts, which costs money.

Across all its services like banking correspondents for commercial lenders, micro ATMs and remittances, its cash handling will be doubling to Rs 100 crore a day in 10 lakh transactions, up from Rs 50 crore in four lakh transaction.

Gupta said Fino is aiming to become the largest distributor of financial services in the mass market, adding its insurance sales for ICICI and other companies have grown four times in the past three months alone.

It also originates up to Rs 60 crore of gold loans a month for ICICI Bank and is in the process of launching to sell gold coins and also mutual funds, he said.

The bank has also received a go-ahead from RBI to tie up with universal banks for taking care of deposits of over Rs 1 lakh, which will go in automatically as a saving or current account deposit .

FINO Paytech Ltd. was incubated by ICICI Bank, India’s largest private sector bank and second largest bank overall, before spinning off as a separate entity in April 2006. Currently public sector banks, including
Corporation Bank, Indian Bank, Life Insurance Company of India, and Union Bank of India, account for 16% of investment financing. Private sector investors include HSBC (25%), ICICI Group (25%), and IFMR
Trust (1%). International investors are IFC and Intel which own 17% and 16% respectively.

Some Interesting Facts about Fino Paytech

1. Fino Paytech is the largest business correspondent in India.

2.Fino Paytech has a massive customer base of over 7.8 Cr customers.

3. Fino Paytech has enrolled over 2.5 Cr families under the RSBY(Rashtriya Swasthya Bima Yojana ).

4. They have an effective MIS for monitoring of field force and transactions.

5. They make ‘anywhere banking’ a reality for microtransaction customers.

6. Fino Paytech offers customers multiple media such as ATMs/MDMs, POS and/or mobile to carry out banking transactions seamlessly.

The company has 4 Subsidiaries as on date. The Financial Performance of the subsidiaries in 2018.

1. Fino Finance Private Limited.

The total revenue from the operation of Fino Finance Private Limited during the year under review is Rs. 12,316.24 lakhs and Net Loss is Rs. 4,200.63 lakhs.

2. FINO Trusteeship Services Ltd.

The total revenue from the operation of Fino Trusteeship Services Limited during the year under review is Rs. 6.69 lakhs and Net Profit is Rs. 5.22 lakhs.

3. Fino Payments Bank Limited.
The total revenue from the operation of Fino Payments Bank Limited during the year under review is Rs. 23,018.49 lakhs and Net Loss is Rs. 6,734.30 lakhs.

4. FINO Financial Services Pvt. Ltd

The total revenue from the operation of Fino Financial Services Private Limited during the year under review is Rs. Nil lakhs and Net Loss is Rs. 0.43 lakhs.

Current Valuation of the Company is close to 1000 Cr.