Fino Paytech raises Rs 149 crore from ICICI Bank's insurance arms
Payments bank licensee Fino Paytech on Wednesday said it has raised Rs 149 crore from ICICI Lombard and ICICI Prudential, clearing the decks for it to seek Reserve Bank of India's (RBI) final nod as it becomes a majority domestic investors-owned entity.
"This round will take the total domestic ownership to over 50% which qualifies us to apply for the final license for the payments bank. We expect to launch the bank in two-three months from now," its managing director and chief executive Rishi Gupta told PTI.
He said partnerships are at the core for its distribution and Fino is resting on three strategic partners --- oil marketeer BPCL, ICICI Bank, and insurance from ICICI Lombard and ICICI Prudential.
Two more domestic investors have also picked up minority stake as part of the same round by putting in Rs 25-30 crore each, Gupta said, declining to identify them.
Gupta said Rs 400 crore has flowed into the company in the past week, which also includes Rs 251 crore from BPCL announced previously, and the funds will suffice it for 12-18 months.
The shareholders of the payments bank now include Blackstone, Intel Capital, HSBC, ICICI Bank, BPCL, IFC, Corporation Bank, Indian Bank, Union Bank of India and Headland Capital Partners.
Fino, which had been operating as a business correspondent, was one among 11 entities given the in-principle nod to start a payments bank by RBI in August 2015.
Other successful entrants included corporate houses Reliance Industries, Aditya Birla Group, the Mahindras, and telcos like Vodafone's M-Pesa and Airtel. Three applicants including Mahindra, Cholamandalam and pharma entrepreneur Dilip Shanghvi have backed out midway.
Airtel has already launched its bank in select few geographies after receiving the final nod, while the rest are in the process of getting final nods or operationalising.