Fintech SaaS Solutions Provider Trust Fintech Files DRHP For NSE Emerge Listing

Fintech SaaS company Trust Fintech Limited had filed its Draft Red Herring Prospectus (DRHP) with NSE Emerge to raise funds via an initial public offering (IPO).

The company’s IPO will comprise fresh issuance of 62,82,000 equity shares, each with a face value of INR 10.

Founded in 1998 by Hemant Chafale, Heramb Ramkrishna, and Mandar Kishor Deo, Nagpur-headquartered Trust Fintech provides core banking SaaS products and fintech software solutions around ERP implementation and customised software solutions development, and SAP B1 and offshore IT services for the banking, financial services, and insurance (BFSI) sector. 

As per the IPO draft papers, Trust Fintech plans to utilise net proceeds from the offering to establish a new development facility at Mihan SEZ in Nagpur; to procure hardware and upgrade IT infrastructure; to enhance, maintain, and upgrade existing products; to fund its global and domestic business development; and for sales, marketing and general corporate expenses. 

The company primarily implements and deploys its flagship core banking software products – TrustBankCBS and MicroFinS. As per its website, TrustBankCBS enables BFSI companies to streamline their business operations to reduce operations and support costs.

On the other hand, MicroFinS is a complete core banking software solution which automates various banking activities in the front office, back office, MIS section in small and growing cooperative societies, and more.

The company, in a statement on Monday (February 12), said it has been aggressively expanding its business operations in India and abroad while operating through its offices in Nagpur, Pune and Mumbai. It is now planning to increase its workforce from the existing 263 employees to 1,000 people within the next three years.

So far, the company has deployed TrustBankCBS in India, Sri Lanka, Nepal, California, Gambia, Tanzania, Ghana, Liberia, Nigeria, and Zimbabwe. 

As per its DRHP, Trust Fintech reported a net profit of INR 4 Cr in FY23, which increased from INR 1.3 Cr in the prior year. Total revenue increased to INR 22.7 Cr in FY23 from INR 18 Cr the previous fiscal year.

Its revenue stood at INR 18.8 Cr during the first half of FY24 on a profit of INR 7.27 Cr.

Corporate Capital Ventures is the lead book runner in this IPO.

It is pertinent to note that SME IPOs have picked pace in India in the last two years, with many internet and new-age tech companies also opting for SME listings. Last year, blockchain and IT development startup Yudiz Solutions got listed at over a 12% premium on the NSE SME platform.

In 2022, drone startup DroneAcharya Aerial Innovations got listed on the BSE SME platform at almost a 90% premium to its issue price.