Posted on February 19, 2016
Intellecap exclusively advised Electronic Payment and Services Private Limited ("EPS" or "Company"), a leading player in the ATM Managed Services industry, in raising significant investment for a minority stake from Apis Partners. Earlier last month, Intellecap also exclusively advised EPS in its acquisition of the complete stake in CISB ATM Services, from CIS Bureaus Facility Services (CISB), its joint venture partner with whom it had won a long-term bid to manage over 5,400 ATMs of public sector banks in 2012.
EPS is a leading retail banking technology and Automated Teller Machine (ATM) services provider for India's rapidly growing ATM network. The Company's services include end-to-end ATM operations, outsourcing and managed services for public, regional rural and co-operative banks across 28 states in India. EPS has installed ATMs for 26 banks including State Bank of India, Bank of Maharashtra and Canara Bank, and has successfully deployed over 5,000 ATMs for management across urban, semi-rural and rural locations throughout the country.
Speaking on this investment, EPS Founder, Mani Mamallan said, "We have developed a highly scalable platform and are working to become the leading ATM outsourcing provider in India, where the number of ATMs is expected to grow from approximately 230,000 today to 550,000 by 2021. At the same time, EPS' market presence and brand equity in the ATM industry and payments industry is growing at an accelerated rate. We have been very impressed by Apis' expertise and relationships in the sector, both in India and globally, and we are excited to work with Apis on accelerating our expansion". Mani Mamallan also said, "With this infusion of funds, we will develop EPS' existing business portfolio and seek to penetrate the untapped potential of semi-urban and rural India under the financial inclusion plan initiated by the Ministry of Finance, whilst providing clients with an omni-channel offering."
"The ATM Management industry in India is entering a high-growth phase, backed by strong Governmental push towards financial inclusion, RBI allowing banks to offer all their products and services through their ATM network, and impending rollouts of Small Finance Banks and Payment Banks. We believe that the sector will head towards consolidation, with players expanding their service offering and also entering into new segments in the payment spectrum," says Meenal Dutia, who leads the financial services practice for Investment Banking at Intellecap which acted as the exclusive advisor to EPS on the fund raise transaction.
Earlier Aavishkaar, Aavishkaar GoodWell and FMO (Netherlands based developmental financial institution) invested $20 million in the Company's first three rounds of funding.
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