BLSE signs definitive agreement to Acquire 55% interest in Aadifidelis Solutions Pvt. Ltd. and its affiliates, one of the leading players in India in the distribution and processing of loans
FinTech BizNews Service
Mumbai, June 18, 2024: BLS E-Services Limited (“BLSE”), has entered into a definitive Share Purchase Agreement (SPA), to acquire a 55% controlling interest in Aadifidelis Solutions Pvt. Ltd. and its affiliates (“ASPL”), one of the largest players in India in the distribution and processing of loans for corporates and individuals, for an Enterprise Value of approx. Rs. 190 Crores. BLSE will make an upfront investment of approx. Rs. 71 Crores (Primary and Secondary) with balance consideration being deferred linked to achievement of milestones in FY2025. The acquisition will be an all-cash deal. The transaction will be completed in Q2 FY 2025.
Operating through a hub-and-spoke model, with a comprehensive Pan-India presence in 17 states and union territories, ASPL’s network of 8,600+ channel partners source loan enquiries, which will align with BLSE’s portfolio of Business Correspondents-led citizen-centric last mile banking services.
ASPL currently facilitates an average monthly loan disbursement of Rs. 1,500+ crores through its extensive network of channel partners and is empanelled with the majority of leading financial institutions, like ICICI Bank, HDFC Bank, Axis Bank, Bajaj Finance, and TATA Capital, to name a few. As per the unaudited financials for FY2024, ASPL and its affiliates achieved revenue of ~ Rs. 577 crores and the EBITDA stood at ~ Rs. 22 crores.
Lagrange Point Advisors LLP, a Mumbai-based M&A advisory firm, acted as the sole transaction advisor to BLSE for this transaction. Dua Associates acted as legal advisors for the transaction.
"Commenting on this milestone, Mr. Shikhar Aggarwal, Chairman of BLS E-Services Ltd. said: “We are delighted to announce the signing of a definitive agreement with ASPL, a strategic move that will unveil a plethora of cross-selling opportunities while integrating specialized loan processing and distribution services into our portfolio, reinforcing the prominent position we hold in delivering last-mile banking services.
With over 6 lakh individuals frequenting our 1,00,000+ touchpoints daily, we are well-positioned to furnish ASPL with ample references for individuals seeking secured & unsecured loans at the grassroots levels in India corresponding to the location of our touchpoints. ASPL’s esteemed relationships and empanelment with the majority of the financial institutions will further fortify our network of 21,000+ Business Correspondent Centres.
Further, beyond the operational synergies, ASPL’s asset-light, low working capital and commission-based model will positively contribute to BLSE’s profitability, propelling us toward a new level of financial success.
The acquisition is a testament to our strategic initiatives towards diversifying our operations and would augment our business, extend our reach and further expand our market share.”
