Muthoot Fincorp Acquires 54pc Stake In Fintech Startup Paymatrix
Muthoot Fincorp, a Gold loan provider, has picked up a 54% stake in Hyderabad-based fintech startup Paymatrix by buying out existing investors.
This investment by Muthoot Fincorp is part of its added focus on the digital payments segment.
As per Thomas John Muthoot, Chairman of Muthoot Pappachan Group, the deal will help them extend their existing lending business by giving them a competitive edge in terms of expanding their product offerings and make a foray into new markets and new customer segments.
Speaking on the development, Thomas John Muthoot said,
“We now hold a majority in Paymatrix, having given full exit to many of the existing investors. We’ve acquired 54 percent equity shareholding in the startup through a combination of primary and secondary investments.”
Incubated at IIIT-Hyderabad, Paymatrix is a fintech startup set up in 2016 by Mukesh Chandra Anchuri, Anusha Kurparthi and Muralidhar Nayak. The startup enables individuals and businesses to better manage cash-crunches and unanticipated expenses by facilitating short-term credit.
Users can pay all their expenses and bills such as rent, rent deposit, maintenance, tuition fees, vendor bills all in one place using their credit card. With a user base of over 82,000, Paymatrix has processed Rs 200 crore worth of transactions to date.
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