Cholamandalam Investment to acquire 72 pc stake in Payswiff for Rs 450 crore

The Murugappa Group NBFC Cholamandalam Investment has signed a shareholders’ agreement and a Share Purchase Agreement on January 17, with Payswiff, its founders and other existing shareholders, according to a regulatory filing.

“The total investment will result in the company holding up to 72.12 per cent of the equity capital of Payswiff on a fully diluted basis and Payswiff consequently will become a subsidiary of the company,” it said. The cash deal may take place in one or more tranches at a price of Rs 1,622.66 per share. Incorporated in 2013, Payswiff is engaged in the business of enabling online payment gateway services for e-commerce businesses and provides e-commerce solutions. It is an omni-channel payment transaction solution that lets business owners accept payments from their customers in-store, at home deliveries, online, and on-the-go using mPOS and POS solutions. “The proposed acquisition is in line with the long-term strategy of the company to explore and expand in the entire lending ecosystem model particularly in the SME segment. Payswiff being a company forming part of the digital and technology ecosystem in the SME segment is expected to add value to the existing Chola ecosystem,” it said.