CAMS Acquires Majority Stake in Fintech Startup Fintuple For Its API Solutions

Computer Age Management Services Limited (CAMS), a financial infrastructure and services provider for mutual funds, alternative investment funds (AIF) and portfolio managers (PMS), has acquired a majority stake in fintech SaaS startup Fintuple Technologies.

Right now, neither of the companies has revealed either the corpus of investment or the percentage of stake acquired by CAMS.

CAMS declined to comment on the financial aspects of the transactions.

Founded in 2018 and based in Chennai, Fintuple is a fintech startup offering a digital infrastructure ecosystem and API solutions for AIFs, portfolio managers, custodians and distributors.

Its portfolio includes technology offerings in the areas of client digital on-boarding, KYC, fund data, fact sheets and analysis and other digital support solutions for AIF and PMS.

In a joint statement, the companies noted that this will help CAMS strengthen its product offerings, especially for digital on-boarding and eKYC.

Commenting on the acquisition, Anuj Kumar, MD of CAMS, said, “We expect the AIF and PMS markets to grow at a CAGR of more than 20% over the next decade, and hence found investing into Fintuple as a great opportunity that will assist CAMS and Fintuple in building overall market reach and driving innovation.”

Kaushik Narayan, cofounder of Fintuple, said, “Alongside the growth potential, the AIF and PMS segment is also poised for technology-led transformation. The synergy between CAMS and Fintuple’s solutions can be leveraged to solve industry problems and partner with clients to build unique, frictionless experiences for their customers.”

With the addition of Fintuple’s portfolio, CAMS will further strengthen its value proposition for the AIF and PMS marketplace.

Founded in early 1988 by V Shankar, CAMS has since then ventured into mutual funds and provides IT solutions to enterprises in the same vertical. Therefore, with the acquisition of Fintuple, CAMS has moved towards consolidation in the segment.

This trend of consolidation in the fintech segment has seen the fintech unicorn Razorpay acquiring a majority stake in Malaysia-based Curlec last month. The acquisition deal was close to $19 Mn to $20 Mn. 

Along with Razorpay, Infibeam Avenues Ltd, the fintech startup providing payment gateway CCAvenue, acquired a majority stake in Bengaluru-based fintech startup Uvik Technologies in a deal worth INR 75 Cr including cash and stock earlier this month.