Financial Information Networks and Operation (FINO), an Indian company that provides technological products to microfinance institutions (MFIs), banks, and insurance companies, has received a INR 70 crore infusion, the equivalent of over USD 15 million, in private equity funding from HSBC Private Equity, the equity investment arm of the Hong Kong bank; Intel Capital, the investment arm of the American semiconductor producer; and the International Finance Corporation (IFC), the investment arm of the World Bank [1,2,3,4,5]. Details of how much was invested by each organization were not made available. Rishi Gupta, Chief Financial Officer of FINO, has stated the capital will be used to help “meet the demand” for various products including servers and biometric cards that store transaction records [1]. The transaction was advised by Avendus Capital, an investment bank based in India [1,6]. In an apparently separate transaction, HSBC and Intel have purchased the stake of FINO formerly owned by Legatum, an investment group based in Dubai [1,7]. Legatum originally bought this stake in 2007 for USD 4.5 million, as reported by MicroCapital [1,8]. According to Mr. Gupta, HSBC and Intel purchased the stake for a “far higher,” though unspecified, price [1]. The percentage stake that HSBC and Intel now have is also unspecified.
By Christopher Maggio, Research Assistant
About:
Financial Information Networks and Operation (FINO)
Description:
FINO is an Indian company that provides technological products to microfinance institutions (MFIs), banks, and insurance companies. Some of its products include biometric smartcards that store transaction records and management software for microloans. The company was founded in 2006. As of December 12, 2009, the company has over 8 million enrolled customers through the financial institutions that use its products.
FINO does not report to the MIX Market, the microfinance information clearinghouse.
Organization’s Website:
http://www.fino.co.in/index.aspx
Contact Information:
Corporate office:
Mumbai
Tarun Agarwal
C-401, Business Square,
Opp. Popular Car Bazaar,
Andheri kurla Rd.
Andheri east
Mumbai – 93.
Tel.: +9140973466/ Fax: +9140973300
R&D Centre and Central operations:
Navi Mumbai
Sanjay Kuberkar
Tarun Bharat,
Plot no. 38 & 39, Sect. 30,
Nr. Sanpada Rlwy. Stn.,
Sanpada west,
Navi Mumbai-400705
Tel.: +9141613466/ Fax: +9127810721
Additional Resources:
VC Circle article entitled ‘FINO Raises Rs 70 Cr From HSBC PE, Others’: http://www.vccircle.com/500/news/fino-raises-rs-70-cr-from-hsbc-pe-others
MICROCAPITAL STORY: New Zealand-based Billionaire’s Legatum group buys $4.5 million Stake in Indian Microfinance Firm: http://www.microcapitalmonitor.com/cblog/index.php?/archives/863-MICROCAPITAL-STORY-New-Zealand-based-Billionaires-Legatum-group-buys-4.5-million-Stake-in-Indian-Microfinance-Firm.html
Bibliography:
[1] VC Circle article entitled ‘FINO Raises Rs 70 Cr From HSBC PE, Others’: http://www.vccircle.com/500/news/fino-raises-rs-70-cr-from-hsbc-pe-others
[2] FINO: http://www.fino.co.in/index.aspx
[3] HSBC Private Equity: http://www.hsbcnet.com/pi
[4] Intel Capital: http://www.intel.com/capital/
[5] International Finance Corporation: http://www.ifc.org/
[6] Avendus Capital: http://www.avendus.com/index.php
[7] Legatum: http://www.legatum.com/
[8] MICROCAPITAL STORY: New Zealand-based Billionaire’s Legatum group buys $4.5 million Stake in Indian Microfinance Firm: http://www.microcapitalmonitor.com/cblog/index.php?/archives/863-MICROCAPITAL-STORY-New-Zealand-based-Billionaires-Legatum-group-buys-4.5-million-Stake-in-Indian-Microfinance-Firm.html
Source Article: VC Circle article entitled ‘FINO Raises Rs 70 Cr From HSBC PE, Others’: http://www.vccircle.com/500/news/fino-raises-rs-70-cr-from-hsbc-pe-others
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