TSI bags ₹200 cr via credit fund
MUMBAI : Piramal Alternatives and CDPQ-backed performing credit fund have agreed to extend a ₹200 crore sum to ATM (automated teller machines) operator Transaction Solutions International (India) Pvt Ltd (TSI) in a structured credit transaction, a top executive said. The capital, raised against convertible securities, will help with TSI’s business expansion initiatives and accelerate its ATM deployment and other payment processing plans, the firm said. “With TSI, we had the opportunity to participate in a professionally led business within the high growth consumer payment sector.
The growth of this sector is vital to achieve the goal to further deepen financial inclusion across the country," Kalpesh Kikani, CEO, Piramal Alternatives, said. Piramal’s performing credit fund, sized at over $300 million, was launched in 2020 and is anchored by Canada’s pension fund CDPQ and some other investors, in addition to the Piramal Group. TSI did not immediately respond to a request for comment on Sunday.
Incorporated in 2006, TSI manages 8,000 brown label ATMs in India. In 2013, private equity firm CX Partners acquired a 75% stake in the business for approximately ₹150 crore from its ASX-listed Australian parent Transaction Solutions International Ltd (TSN). Thereafter, in 2017, CX Partners sold this stake back to the parent TSN for approximately ₹244 crore.
The growth of ATM operators was stymied by the surprise denotification of high value currency notes by the Indian government in November 2016, which propelled digital payments. In recent years, many ATM operators have bounced back after banks began outsourcing the management of their ATM machines. TSI India manages ATMs for nine public sector banks and two private sector banks
. Read more on livemint.com
