Tally Solutions’ Tejas Goenka, Mphasis Canada's Nitin Sathawane, and ex-HDFC executive Ramnath Raikar were among those who participated in the funding round
Trust Fintech filed its draft red herring prospectus (DRHP) with NSE Emerge earlier this month
The company provides core banking SaaS products, fintech software solutions around ERP implementation, and offshore IT services for the BFSI sector
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Fintech SaaS company Trust Fintech said it has raised INR 5.42 Cr ($653k) in its pre-IPO round from Tally Solutions MD Tejas Goenka, Mphasis Canada’s head of business Nitin Sathawane, and ex-HDFC treasury head Ramnath Raikar.
Raisoni Group cofounder Siddharth Raisoni, MSMEx cofounderAmit Kumar, among others, also participated in the round, the company said in a statement on Friday (February 23).
It is pertinent to note that Trust Fintech filed its draft red herring prospectus (DRHP) with NSE Emerge earlier this month. Its IPO will comprise fresh issuance of 62,82,000 equity shares. The fintech SaaS company is looking to get listed next month.
Founded in 1998, Trust Fintech primarily provides core banking SaaS products. It also offers fintech software solutions around ERP implementation and offshore IT services for the BFSI sector.
The company’s public listing ambitions are a byproduct of the expansion spree it has undertaken. At the time of filing its IPO papers, the Nagpur-headquartered company said it has been expanding operations in India and abroad while operating through its offices in Nagpur, Pune and Mumbai.
Trust Fintech aims to utilise the funds raised from the IPO to construct a new development facility at Mihan SEZ in Nagpur, procure hardware and upgrade IT infrastructure, among others.
As per its DRHP, Trust Fintech reported a net profit of INR 4 Cr in FY23 against INR 1.3 Cr in the prior year. Total revenue increased to INR 22.7 Cr in FY23 from INR 18 Cr in the previous fiscal year.
The development comes at a time when a number of internet and new-age tech companies are going for SME IPOs amid the ongoing funding winter. Drone startup DroneAcharya Aerial Innovations started this trend in 2022 when it got listed on the BSE SME platform at an almost 90% premium to its issue price.
Blockchain and IT development startup Yudiz Solutions also got listed on NSE Emerge at an over a 12% premium last year.
Most recently, OTT streaming platform Ullu Digital filed its DRHP to raise INR 135 Cr-INR 150 Cr via an IPO on BSE SME, while agri-drone company AITMC Ventures plans to list on NSE Emerge.
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