Indian gold loan company Muthoot Fincorp has reportedly acquired a 54% stake in fintech startup Paymatrix, deepening its focus on the digital payment space.
Financial terms of the deal were not disclosed.
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Muthoot Pappachan Group chairman Thomas Muthoot told PTI that the firm acquired majority ownership in the startup through a combination of primary and secondary investments.
He said: “We now hold majority in Paymatrix, having given full exit to many of the existing investors.”
Established in 2016, Paymatrix focuses on streamlining property rent payments and rent collections for tenants and house owners.
It facilitates online payment of property rentals, rent deposits and maintenance payments with credit cards.
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By GlobalDataPaymatrix expanded its payments offering in the last couple of years by adding large ticket recurring expenses such as tuition fees, maintenance bills, vendor payments via credit cards.
Having processed $2bn until now, the fintech has over 82,000 customers currently.
Commenting on the deal, Muthoot added: “This investment in Paymatrix will help us extend our existing lending business by giving us a competitive edge in terms of expanding our product offerings and make a foray into new markets and new customer segments.”
The Muthoot Pappachan Group, with a workforce of over 27,000, operates in areas including financial services, gold loans, automotive retail, hospitality, realty, IT, alternate energy and sports.
In 2015, the group joined forces with Wiki Technologies to expand its remittance business in the US.
Meanwhile, the payment space in India has been witnessing increased momentum recently.
Last week, BharatPe acquired multi-brand loyalty programme provider Payback India from American Express and ICICI Investments Strategic Fund.
Earlier this month, British payment firm Wise expanded its footprint to India with the launch of a foreign exchange service in the country.
Last month, a report emerged about Indian payments firm Paytm gearing up to raise about $3bn in what could be the biggest-ever initial public offering (IPO) in the country.
