General Atlantic pledges USD 100 million for Karvy Fintech’s drive into Southeast Asia

The company looks at both geographical and business expansion. 

Photo by Austin Distel on Unsplash

Indian fintech startup Karvy Fintech secured a USD 100 million pledge from private equity (PE) firm General Atlantic, as the Hyderabad-based company is looking at both geographical and business expansion.

Karvy Fintech’s main business centers on mutual funds. It offers services that connect investors and mutual funds distributor. The company claims to handle more than 90 million investor accounts from 1300 issuers including banks, public sector units, and mutual funds.

In addition, the firm also provides other services ranging from corporate registry and back-office operation for global funds. It’s also planning to diversify into the insurance services and alternate funds space.

Around 15% of its revenue coming from the international business. Its sales stood at USD 62 million which has doubled in the past five years.

Its clients include global financial services firms such as Manulife Financial Corp., Prudential plc, Templeton Financial Group, Aberdeen Group, and Principal Financial Group. The firm is also looking to expand its global clientele, and expand deeper into the Southeast Asia area, including marekts like Malaysia, Maldives, the Philippines, and Thailand.

Shantanu Rastogi, managing director, General Atlantic says, “General Atlantic has a commitment to Karvy in the form of a line of 100 million dollars per funding round, which it can draw upon, if and when required, both for investing in capital expenditure and for making acquisitions.” General Atlantic, also took a majority stake in Karvy Fintech in November 2018 and plans to make acquisitions through Karvy’s internal accruals.