Fino PayTech Limited Unlisted Stocks

In the News - 

Fino Paytech News - 30th August 2021   Fino Paytech News 30th August 2021



  • Incubated by ICICI Bank, Fino PayTech was formed in 2006 as a payments technology company and corporate service provider for banks, applied for a payments bank license.
  • It is a business and banking technology platform that enables financial institutions to cater to the unbanked and economically marginalized, providing solutions to various banks, insurance companies and government institutions.
  • The key business drivers for Fino PayTech Limited are liability products, Micro ATM, AePS transactions, remittances, payment services partnerships, insurance (life, health including Covid19, motor) and gold loan referrals for partner banks.


Fino Group

Fino Payments Bank Limited

Fino Payments Bank Limited was incorporated in 2017 as a wholly-owned subsidiary of Fino PayTech Limited. The bank provides banking services using technology platforms such as AePS, micro-ATMs, tablets or mobiles.

Fino Financial Services Private Limited

Fino Financial Services Private Limited includes activities involved in or closely related to financial intermediation.

Fino Trusteeship Services Limited

Fino Trusteeship Services Limited includes activities of financial adviser's, mortgage advisers and brokers, bureau de change (foreign exchange services) etc.

Fino Finance Private Limited

The Company provides micro-credit and micro-loans for the un-served women population, small businesses, agriculture, and other allied activities. Fino Finance serves customers in India.


Key Shareholders- Fino PayTech Limited

  • Since its inception, Fino has raised over INR 900 Cr. through various PE funds.
  • In 2011, Blackstone invested about INR 150 Cr. in the Company for a 26% stake, valuing the company at INR 576 Cr.
  • In 2016, BPCL invested INR 251 Cr to pick up a 21% stake valuing the company at INR 1200 Cr.
  • In 2018, SoftBank Group and Temasek Holdings valued Fino Paytech at about INR 2,000cr or INR.203 per share.


History & Evolution 

  • Fino is a thought leader, innovator and implementer of technology solutions combined with extensive services delivery channel, whose vision is to fulfil every financial service need of its customers.
  • In the initial years, Fino used its network of 50,000 agents to reach the doorstep of the rural consumer with their handheld Aadhar based technology to open their bank accounts.
  • The Bank is engaged in providing various types of financial services to the rural, poor, and underserved and unserved classes to help them be economically self-reliant.


Key Highlights- Fino Payments Bank Limited

  • ₹ 7,910 Million Revenue in FY 21
  • 641,892 Active Merchants
  • ₹12,500 Cr Transactions Per Month
  • 1,786,716 Active CASA Accounts
  • 55% Market share Micro ATMs
  • 249,841 Micro ATM devices
  • From Small Finance Bank to Schedule Commercial Bank
  • ₹ 102.69 Million Gold Loan
  • ₹ 9.55 Million Insurance Income
  • ₹ 204.74 Million Net Profit in FY 21


Charting inclusive growth- Fino Payments Bank Limited

  • Following RBI’s guidelines in November 2014, Fino PayTech, which was established in 2006 as a payments technology company and corporate service provider for banks, applied for a payments bank license.
  • Fino Payments Bank started operations in July 2017 with Fino PayTech as its non-operating holding company, following which most of the latter’s activities merged with the former.
  • The fintech bank turned profitable in the fourth quarter of FY20 and has consistently enhanced its profitability since. This makes FPBL the first profitable fintech to file for an IPO.
  • Its revenue for FY21 stood at INR 791 crores that grew at a CAGR of 29% in the last three years. The bank registered a profit of INR 20.5 crores in FY21 with an annual average ROE of 15%, the DRHP states.
  • It has the largest network of micro ATMs as of March 2021, with a market share of 55%, a robust merchant network of 6.4 lakhs, and 25.7 lakh bank accounts.
  • Fino is looking to expand its network to 10,00,000 merchant points by 2022-23.


Industry Overview

  • Indian Digital Payment industry has opened up since 2014 under the aegis of RBI to promote financial inclusion. Since then from being primarily a cash-obsessed economy, India’s digital payment story is new but exciting and has made rapid progress. The Indian payment industry is going through a transformational phase.
  • The reduced transaction charges and the degree of ease of cash transfers associated with electronic fund transfers and mobile banking will further drive the growth of digital payment systems in India.
  • The government’s positive policy frameworks such as Goods and Services Tax (GST), financial inclusion, improving digital infrastructure, launching payment systems such as aadhar enabled payments, are supporting the digital payments industry.
  • Alternate digital payment instruments like digital wallets, UPI, payment banks, Bharat QR are expected to grow fiercely and are estimated to double their contribution to 30% in the digital payment industry.
  • ACI Worldwide released a new report that indicated India retained the top spot with 25.5 billion real-time payments transactions, followed by China with 15.7 bn transactions. In 2020, the transaction volume share in India stood at 15.6% and 22.9% for instant payments and other electronic payments respectively.
  • The nascent yet fast-evolving digital payments industry in India, is expected to grow at a CAGR of 27% during the FY20-25 period.
  • Meanwhile, the overall fintech market, which also catered to online lending, wealth management, insurance technology, etc., is likely to grow from INR 1,900 billion in 2019 at a CAGR of 22.7% during the period 2020-25.
  • It is expected that more than 80% of the urban population in India will adopt digital payments as a part of their routine by 2022, and 70% of the retail chains will adopt the same.



  • India’s journey of creating a digital financial infrastructure has been characterized by collaboration between the government, the regulator, banks, and fintech. This has helped to advance the country’s goal of enabling financial inclusion and also provided rapid payment digitization for citizens.
  • Fino PayTech Limited is among the very few players in the industry who have successfully captured the opportunity and has created a robust ecosystem of digital infrastructure, merchant and customer network and product and service offerings.
  • A key focus area of the Company is the under-penetrated rural market with limited internet and smartphone usage.
  • Fino Payment Bank is actively working towards financial inclusion and DBT mechanisms. For MNREGA, it issues cards that function on a pan India basis. The cards can be used to make payments across 50,000+ villages in the country.
  • Many State Governments are using Fino’s architecture based on fingerprint usage as validation, across the country to deliver social security schemes to citizens.
  • Payment banks don’t have credit risk or credit cost on their balance sheet.
  • On the 30th of July, 2021, Fino Payments Bank Limited, a wholly-owned subsidiary of Fino PayTech Limited, filed DRHP with the market regulator SEBI for an Initial Public Offering.
  • Over the last few years, FPBL has witnessed a steep surge in transaction volumes on the back of digitization and proliferation of its banking points. The Bank has the largest network of micro ATMs as of March 2021, with a market share of 55%, a robust merchant network of 6.4 lakhs, and 25.7 lakh bank accounts.
  • According to merchant banking sources, the IPO is expected to fetch INR 1,300 crore.