Yudiz Picks Up 51% Stake In ABCM App To Venture Into Fintech Space

Listed blockchain and IT development startup Yudiz Solutions has forayed into the fintech sector by acquiring a majority stake in Mumbai-based digital payment solutions company ABCM App.

In a statement, the company said it has picked up a 51.01% stake in ABCM App as it seeks to expand its offerings. While Yudiz did not disclose the financial terms of the deal, in an exchange filing last month, the company said the all-cash deal would be valued at INR 6.14 Cr.

Founded in 2019, ABCM App is a SaaS startup specialising in the design and development of financial software and mobile applications. The company claims to have clocked a revenue of INR 81.58 Lakh in the fiscal year ended March 2024 (FY24).

According to Yudiz, the acquisition would give it access to ABCM’s established fintech clientele, and open cross-selling opportunities for its gaming, blockchain and artificial intelligence solutions.

Under the partnership, Yudiz will integrate its blockchain and IT expertise with ABCM App’s fintech solutions to develop solutions such as AI-driven financial analytics, blockchain-based payment systems and secure digital wallets.

With this acquisition, Yudiz is also well-positioned to introduce new concepts like gamified payment platforms and tokenised financial products, it said.

The company added that it will bank on ABCM App’s resources, talent and technology to drive operational efficiencies, streamline costs, enhance productivity, and enable rapid scaling across business verticals.

Founded in 2011, Yudiz specialises in web and mobile app development while providing services in areas of emerging technologies such as AR/VR, AI/ML, blockchain and IoT. Its shares were listed on the NSE SME platform in August last year.

Yudiz posted a net loss of INR 2.9 Cr in FY24 as against a net profit of INR  INR 2.7 Cr in FY23.  

The company’s entry into the fintech sector puts it in direct competition with established players in the space such as Paytm, CRED, and Pine Labs. However, Yudiz will look to carve out a niche with its blockchain-based fintech solutions.

According to Inc42 data, the Indian fintech industry is expected to grow at a CAGR of 18% to reach a market size of $2.1 Tn by 2030, Since 2014, the sector has attracted more than $25.8 Bn in investments, minting 22 unicorns and 33 soonicorns in the process.