HDFC Bank Q3 consol net profit grows 2.6% sequentially to over ₹ 17,000 crore

Pre-provision operating profit (PPOP) came in at ₹23,650 crore which grew 4% sequentially.HDFC Bank’s third quarter consolidated net profit went up 2.6% sequentially to ₹17,257 crore from ₹16,811 crore in the second quarter of FY24. The year on year numbers are not comparable as HDFC Bank merged with HDFC as of July last year.The reading is better than what the street expected as most analysts predicted a marginal sequential drop in profits. Its total income went up by 6.9% to ₹1,15,015 crore as compared to ₹1,07,566 crore in the second quarter. On a standalone basis, its net interest income grew 3.9% to ₹28,470 crore from ₹27,385 crore in the September quarter. This was less than what the street was expecting. Provisions and contingencies for the quarter stood at ₹4,603 crore versus ₹3,311 crore in Q2. Gross non-performing assets (NPAs) saw an improvement sequentially as they stood at 1.26% of gross advances as compared to 1.34% as of September end. Net NPAs were at 0.34% of net advances for the third quarter.HDFC Bank’s third quarter consolidated net profit went up 2.6% sequentially to ₹17,257 crore from ₹16,811 crore in the second quarter of FY24. The year on year numbers are not comparable as HDFC Bank merged with HDFC as of July last year.The reading is better than what the street expected as most analysts predicted a marginal sequential drop in profits. Its total income went up by 6.9% to ₹1,15,015 crore as compared to ₹1,07,566 crore in the second quarter.Gross non-performing assets (NPAs) saw an improvement sequentially as they stood at 1.26% of gross advances as compared to 1.34% as of September end. Net NPAs were at 0.34% of net advances for the third quarter.Total deposits grew 27.7% while CASA deposits grew 9.5% on a year on year basis. Gross advances saw an increase of 62.4% YoY due to the effects of the merger. The balance sheet as of December 2023 stands at ₹34,82,600 crore.Nomura expected the bank to report a 6% sequential rise in net interest income and a 3% drop in profit after tax QoQ. Yearly growth is not comparable for the bank due to its merger with HDFC in July last year.Most banks are expected to see margin contraction, lack of treasury gains, and higher opex including staff cost and franchise cost in the third quarter. Emkay expects HDFC Bank’s net interest margins (NIMs) to recover from their lows seen in the second quarter.“HDFC reported strong credit revival of around 5% QoQ, but deposit growth has been lower of 2% QoQ, which we believe could be due to the unwinding of ICRR and should help the bank witness some margin recovery from the lows of Q2,” said Emkay.BoBCaps on the other hand expected its benefits from absorption of excess liquidity in the books likely to be offset by higher term deposit rates, leading to contraction in net interest margins.“Credit cost to remain stable. Expect minor YoY improvement in gross non-performing assets (GNPA) and net non-performing assets (NNPA) with controlled slippages,” BoBCaps said.

What the fintech industry hopes for the 2024 budget

A new BankBazaar.com article outlines the budget wish-list of the fintech sector, which includes getting all banks on board with the account aggregator structure, creating parity between digital and non-digital lenders, and treating unlisted equity at par with listed equity for long-term capital gains taxation.Expectations are high regarding certain favors being given to taxpayers and specific industries, even though India's finance minister Nirmala Sitharaman has stated that the upcoming Budget, which is scheduled to be presented on February 1, is only a vote-on-account (approving the continuation of existing programmes) and not a full-fledged Budget.BankBazaar.com has published a list of requests the fintech industry has made of the government in a report. While some of these requests may not be covered by the budget, they can be seen as a comprehensive list of what the fintech industry hopes to see in 2024.Account aggregator (AA) framework with fast tracking – The government introduced the AA framework in September 2021, which makes it possible for financial institutions like banks and insurance companies to securely share a person's data with that person when that person gives consent. The idea is that a person can electronically share their financial information with another financial institution rather than having to send paperwork to each one individually. The person must register with an AA, an organization under RBI regulation.The BankBazaar.com paper discusses getting as many bank accounts as possible integrated into this framework and bringing all banks—public and private—on board the AA system. According to the most recent data, a few banks are still not included in the AA framework, including City Union Bank, Dhanlaxmi Bank, RBL Bank, South Indian Bank, and others.It also discusses incorporating the Goods and Services Tax Identification Number, or GSTIN—a designation that in India identifies businesses that are registered for GST—into the AA framework. Once that occurs, it will open the door for small enterprises and retail consumers to obtain loans from many lenders in a purely digital manner.More documents have been added to DigiLocker. Additional documents including the EPFO passbook, ePAN, and form 26 AS (statement showing tax credit) should be added to DigiLocker, according to a BankBazaar.com article. Customers will benefit from easy access to their papers and the ability to share them with financial institutions for prompt credit disbursement.The Ministry of Electronics & IT introduced DigiLocker, a safe cloud-based platform for document exchange, archiving, and authentication. Using a smartphone or Aadhaar number, one can register for DigiLocker and then submit documents.Creating an even playing field for online and offline lenders The RBI released its rules for digital lending in September 2022, in response to the unscrupulous activities of illicit digital lending apps. The guidelines place the burden of proof on banks and NBFCs to make sure that, among other things, grievance redressal officers are engaged, loan-related costs are disclosed upfront, and digital lending apps and platforms do not misuse customer data. They also state that loan servicing occurs directly with the lender's (regulated entity) account and not the digital lending app or platform.According to the BankBazaar.com research, online and offline lending should be treated equally. This consumer-centric legislation that was put in place for the online lending sector must also be applied to the offline lending sector. According to the research, "the growth of the FinTech industry depends on the level playing field principle."Laws pertaining to the DPDP Act's implementation: The Digital Personal Data Protection Act, 2023 (DPDP Act) mandates that anyone in possession of data take appropriate precautions, obtain consent before using the data, and even face severe fines in the event that a data breach occurs. According to the DPDP Act, a "consent manager" is any third-party organization that is registered with the Data Protection Board and that gives people the ability to grant, monitor, and revoke consent for the use of their data by "data fiduciaries," such the government or a financial institution.   

Groyyo Secures $5.4 Mn To Power MSMEs With Manufacturing Solutions

OVERVIEW - Established in July 2021, Groyyo provides manufacturing MSMEs in the fashion and leisure sectors with a centralised platform that enables them to grow and improve their business endeavours.The money will be utilised to strengthen Groyyo's cash reserves and support its strategic goals of revolutionising the manufacturing industry. Groyyo, a business-to-business manufacturing and supply chain enablement startup, has raised INR 40 Cr ($5.4 Mn) from Lighthouse Canton and Trifecta Capital as part of its debt fundraising round. business, which is based in Delhi NCR, plans to use the additional funding to increase its financial reserves and scale up its manufacturing-related strategic projects. Groyyo, which was founded in July 2021 by Subin Mitra, Pratik Tiwari, and Ridam Upadhyay, provides manufacturing micro, small, and medium-sized firms (MSMEs) in the fashion and lifestyle sectors with a centralised platform, enabling them to grow and improve their commercial endeavours. "The additional capital infusion will enable us to collaborate with a wider range of SMEs and support them in expanding their operations worldwide," stated Mitra. He continued by saying that the investment will help the business achieve its objective of enabling South Asian SMEs to expand internationally and digitalize their shop floor through in-house technological solutions. "This is also highly aligned with the Indian government's Made in India initiative, as we relentlessly strive to attract a growing amount of global demand to the subcontinent," he continued. Through an order management tool, the business hopes to offer entry-level technology to overlook small-scale industries in Delhi NCR. It states that it has over 360 factories working for more than 110 companies, generating a wide variety of goods in 150 different categories. Groyyo operates in India as well as the UAE, Bangladesh, Vietnam, and Turkey, which increases efficiency. Additionally, the business says it has reached international stores Inditex, Next, Mango, Ross, and Burlington.In order to expand the team throughout important demand belts in the US and the EU, as well as industrial clusters in Bangladesh and India, the business raised $40 million in debt and equity in its Series A fundraising round earlier in 2022.  

Adya.ai Secures Funding To Assist Businesses in Developing Apps for ONDC

The pre-series A investment round of Adya.ai, a startup providing digital commerce solutions, has raised Rs 10.5 crore from investors in Indian Angel Network (IAN) and other strategic investors.According to the company, IAN's investors contributed Rs 3.75 crore, with the remaining funds coming from other key investors.Adya.ai, a technology service partner, was founded in 2023 by Shayak Mazumder, CEO and CTO, Archana Mazumder, COO, and Angad Singh Ahluwalia, CBO. The company employs data science and artificial intelligence (AI) to assist businesses with digitizing. It also provides plug-and-play tech stacks as well as other ONDC integration solutions. Enterprise Tech Startup Adya.ai Secures Funding To Assist Businesses In Developing Apps On ONDC Indian Angel Network (IAN) led the pre-Series A funding round, which brought in INR 10.5 Cr ($1.2 Mn). 'Strategic' investors who wished to remain anonymous also participated in the round. IAN gave the startup INR 3.75 Cr. in funding. Digital commerce and technology solutions provider Adya.ai raised Rs 10.5 crore in a pre-Series A funding round, led by investors from Angel Network such as Uday Chatterjee, Romesh Sobti, Sri Prakash, and Hari Balasubramanian. Indian Angel Network (IAN) provided Rs 3.75 crore to this tranche, along with contributions from other key investors.Adya.ai released a news release stating that the firm plans to utilize the money to strengthen its market position, develop its innovative products, and accelerate the development of AI technology.Adya.ai, a SaaS-based solution for data security and ransomware prevention, was co-founded in 2023 by Angad Singh Ahluwalia, Shayak Mazumdar, and Archana Mazumdar. The answer to find a company's most sensitive data, protect it from undue exposure, and alert management in the event that it is stolen or exploited is said to involve big data and machine learning.According to the Bengaluru-based startup, their system also provides businesses with a dashboard where they can view the files and folders that any customer has access to just clicking on a user. The ONDC's technological service partner, Adya.ai, powers major sectors including retail, logistics, F&B, transportation, credit, insurance, and finance.Adya.ai asserts that its technology marketplace has allowed over ten major enterprise contracts, including partnerships with Canara Bank, Aditya Birla Financial Limited, Hindustan Unilever, and others. The company focuses on areas like CPG, financial services, retail, and mobility. The platform for seed and early-stage investments known as the IAN Group is made up of IAN Fund I, BioAngels, and the IAN Angel Group. With investments in 19 distinct industries, the sector-agnostic fund has helped innovative businesses in India and seven other nations.  

Today's Stock Market: Sensex, Nifty Maintain Losses Into Day Three As HDFC Bank and Lindtree Continue to Drag

Sensex and Nifty Continue To Fall Into Day Three Closing Bell As HDFC Bank, LTIMindtree Drag Standardization Due to a decline in HDFC Bank and LTIMindtree shares following their December quarter results, Indian indices witnessed their third day of losing gains. The Nifty 50 and Sensex have both dropped by almost 3% over the past three days. The Sensex finished today at 71,186.86, down 313.90 points, or 0.44%, and the Nifty 50 closed at 21,465.25, down 106.70 points, or 0.49%. "The Index has formed a spinning top candlestick pattern which indicates a reversal of trend and to confirm the same, the Index needs to breach the hurdle of 21,530 while the immediate support is placed at today's low i.e. 21,285," said Aditya Gaggar, director of Progressive Securities.The index was dragged by Asian Paints Ltd., Titan Co Ltd., NTPC Ltd., HDFC Bank Ltd., and LTIMindtree Ltd. In the meantime, the index was positively impacted by Sun Pharmaceutical Industries Ltd, ICICI Bank Ltd, Reliance Industries Ltdz, Larsen & Toubro Ltd, and Axis Bank Ltd.

Nuvei acquired Paya for $1.3 billion

According to CEO Philip Fayer, Nuvei's acquisition of the Atlanta business will improve its standing in integrated payments, B2B, and international e-commerce.   According to a news release released on Monday, Nuvei, a company that facilitates payment acceptance and provides payout choices, intends to integrate Paya's integrated payment capabilities into its global platform. Paya provides integrated payments across a range of verticals, including business-to-business, healthcare, nonprofit, and education.   According to Nuvei CEO Philip Fayer, the acquisition will improve the company's standing in the international e-commerce, integrated payments, and business-to-business sectors. Based on information from the company's LinkedIn profile, Nuvei was established in 2003.   According to the press announcement, Fayer stated that the inclusion of Paya "will accelerate our integrated payment strategy, diversify our business into key high-growth non-cyclical verticals with large addressable end markets and enhance the execution of our growth plan."   According to the announcement, the deal is anticipated to be finished by the end of the first quarter. According to Nuvei, it intends to use a combination of cash, an already-existing credit facility, and a brand-new secured credit facility worth $600 million to finance the acquisition.

Deutsche Börse pays €3.9 billion to acquire SimCorp.

In the buyout deal, Deutsche Boerse acquires more than 90% of SimCorp's shares. The amount is an estimate, and by the end of the week, it hopes to release an official figure that will enable the deal to conclude within the next five working days. The combination of SimCorp's investment management software and Deutsche Boerse's data, which was revealed in April, has been hailed by the management of Deutsche Boerse as a critical component of the company's future strategy.   Furthermore, Deutsche Börse has published a notice on the compulsory acquisition of the shares held by the remaining minority owners in SimCorp, in accordance with sections 70–72 of the Danish Companies Act. Deutsche Börse publicly requests that all surviving minority SimCorp owners transfer their SimCorp shares to Deutsche Börse within the mandatory acquisition notice period, which ends on October 30, 2023, at 23:59 (CEST) and lasts for four (4) weeks.   Cash payment will be accepted for the mandatory purchase of SimCorp shares, which have a nominal value of DKK 1.00 and will be made at a cost of DKK 735 per share.   The SimCorp Board of Directors has taken note of the fact that the mandatory purchase is being carried out at the same price per share (DKK 735) as the offer made to the shareholders. The Board of Directors cites its June 7, 2023, announcement about the Offer.

For $10.5 billion, Nasdaq buys Adenza.

Today, Nasdaq announced that it is spending $10.5 billion to buy Adenza, a business that creates regulatory software and risk-management tools for the financial services industry.   According to a press release from the firm today, the megabucks acquisition, which consists of an equal portion of cash and stock, will increase Nasdaq's serviceable addressable market (SAM) to $34 billion, or $10 billion over its current level. Second only behind Qualtrics's $12.5 billion acquisition, which was disclosed a few months ago, is the deal, which ranks among the largest acquisitions of the year thus far.   Adenza provides banks, insurance companies, broker-dealers, and other similar financial sector corporations with an end-to-end platform that covers everything from data administration to reporting and is accessible through cloud computing or on-premises installation. The company has two headquarters: one in New York and the other in London.   Nasdaq, which runs three stock exchanges in the United States and seven in Europe, said it will be in a better position to offer “comprehensive support to financial institutions” in the areas of regulatory technology, compliance, and risk management now that it has taken Adenza under its wing.   Financial institutions employ software tools sold by Adenza to make sure their operations adhere to regulatory requirements. The technologies can gather financial activity data from an organisation, look for indications of compliance problems, and present the data in a dashboard. The software developed by Adenza also simplifies associated duties, such making sure dashboard data is correct.    The company also provides a different set of applications that facilitate trade execution for financial institutions. A platform that banks can use to get market data and buy shares is one of the software solutions offered by Adenza. Users are able to evaluate new investing strategies before putting them into practice by using a simulation tool.

Worldpay is sold by FIS to GTCR for $18.5b.

In one of the biggest corporate carve-outs in history, US financial technology company Fidelity National Information Services has agreed to sell private equity firm GTCR the bulk of its merchant payments division, Worldpay. The transaction is valued at up to $18.5 billion.   After telling investors in February that it intended to spin off the unit to stockholders, FIS changed its strategy and would now maintain a 45% ownership in Worldpay in addition to receiving net proceeds of $11.7 billion. The Florida-based business announced on Thursday that it will use the money to finance share buybacks and debt repayment.   The Chicago-based GTCR is expected to invest over $5 billion in Worldpay, with a valuation of approximately $4.5 billion for FIS's 45 percent equity stake, as per individuals acquainted with the situation.   According to people familiar with the situation, a syndicate of lenders led by Goldman and JPMorgan will raise $8.4 billion in debt to finance the private equity firm's acquisition. UBS, Deutsche Bank, Citigroup, and Wells Fargo are also involved in the funding.   Chief executive Stephanie Ferris stated in a statement, "This transaction provides certainty for all stakeholders and allows FIS to partially monetarilyze our merchant solutions business at an attractive valuation."   GTCR has a history of investing in the payments industry; in 2010, it even sold a company to Worldpay for a price over $1 billion. According to those with knowledge of the situation, Thursday's transaction is the biggest in the company's history.    

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HDFC Bank to sell its whole 9.95 percent equity stake at ₹600.36 per equity share to Softcell Technologies Global Private Limited (STGPL).

For a value of ₹9.94 crore, HDFC Bank has signed an agreement to sell its whole 9.95 percent equity ownership in Softcell Technologies Global Private Limited (STGPL) at ₹600.36 per equity share.   Founded on September 6, 2018, STGPL is a company that sells software, related services, and IT items. The company reported a net profit of ₹11.33 crore for FY22, with a turnover (operating income) of ₹584.42 crore.   According to the bank's regulatory filing, the deal is expected to be completed by the end of February.   According to the filing, STGPL is a shareholder of HDFC Investments Limited, a promoter group entity of the Bank.    

Sonata Finance is expected to be acquired by Kotak Mahindra for ₹537 crore.

The Reserve Bank of India (RBI) has given Kotak Mahindra Bank permission to acquire Sonata Finance, a microlender, for a sum of Rs 537 crore. The RBI has allowed Kotak to make Sonata its business correspondent subsidiary, making it a wholly-owned subsidiary of the bank. Through the acquisition, Kotak will be able to further establish itself in northern India's semi-urban and rural areas. Sonata has Rs 1,903 crore . In a notification to the exchanges, Kotak Mahindra Bank stated that Sonata will become a fully owned subsidiary of the bank upon the completion of the deal (subject to obtaining other necessary approvals).   Subject to the necessary clearances, including the RBI's, the bank had entered into share-purchase agreements with the shareholders of Sonata Finance, an NBFC-MFI, in February with the aim of purchasing a 100% stake for ~537 crore.   In a notification to the exchanges, Kotak Mahindra Bank stated that Sonata will become a fully owned subsidiary of the bank upon the completion of the deal (subject to obtaining other necessary approvals). Subject to the necessary clearances, including the RBI's, the bank had entered into share-purchase agreements with the shareholders of Sonata Finance, an NBFC-MFI, in February with the aim of purchasing a 100% stake for ~537 crore.

The U.S. economy will be impacted in 2024 and 2025 by "all these very powerful forces," according to Jamie Dimon.

Jamie Dimon, the CEO of JPMorgan Chase, stated that he is still cautious about the U.S. economy for the next two years due to a mix of geopolitical and financial risks. At the World Economic Forum in Davos, Switzerland, on Wednesday, Dimon told Andrew Ross Sorkin on CNBC, "You have all these very powerful forces that are going to be affecting us in '24 and '25.""I still wonder if we fully comprehend the mechanisms behind the quantitative tightening, the terrorist activity in Israel and the Red Sea, and the Ukraine," Dimon stated. The term "quantitative tightening" describes actions taken by the Federal Reserve to lower the size of its balance sheet and scale back earlier initiatives, such as bond-purchasing plans.   Despite record profits at JPMorgan, the country's largest bank, and an unexpectedly strong U.S. economy, Dimon has urged caution over the past few years. Because of high employment rates and savings from the pandemic, the American consumer has largely remained healthy despite the damaging effects of inflation.n Dimon’s view, the relatively buoyant stock market of recent months has lulled investors on the potential risks ahead. The S&P 500  market index rose 19% in the past year and isn’t far from peak levels.  “I think it’s a mistake to assume that everything’s hunky-dory,” Dimon said. “When stock markets are up, it’s kind of like this little drug we all feel like it’s just great. But remember, we’ve had so much fiscal monetary stimulation, so I’m a little more on the cautious side.    

Offer for New Fund: Motilal Oswal The Motilal Oswal Large Cap Fund is launched by AMC; should you invest?

The "Motilal Oswal Large Cap Fund" is the newest investment product offered by Motilal Oswal Asset Management Company. The AMC claims that this open-ended equity scheme is purposefully created to give investors a special chance to capitalize on the large-cap segment's potential.Investment Objective: To achieve long-term capital appreciation by predominantly investing in equity and equity-related instruments of large-cap companies. Nevertheless, there can be no guarantee that the scheme's investment goal will be accomplished.

Evolving Trends in Stock Market Regulations: Adapting to Algorithmic and Automated Trading in India

With the growing use of automated and algorithmic trading, the Indian stock market is going through a major transition. This technological evolution demands a corresponding shift in regulatory frameworks to maintain market integrity, fairness, and stability. High-frequency trading (HFT) and other forms of algorithmic trading have grown significantly in the Indian market. In order to profit from transient market movements, HFT, in particular, employs techniques like market making, momentum trading, and statistical arbitrage. While these technologies enhance market efficiency and liquidity, they also pose challenges such as potential market manipulation and a possible unfair advantage to large institutions over smaller investors. The Securities and Exchange Board of India (SEBI) has taken the initiative to regulate algorithmic trading in response to these issues. The main goal of the most recent regulations is to guarantee that exchanges have approved and certified all trading algorithms. This includes a thorough vetting process, and brokers are required to ensure proper security measures are in place to prevent unauthorized algorithmic activities. Additionally, SEBI has tightened short-selling norms to prevent market abuses like naked short-selling, mandating that all investors honor their securities delivery obligations. The Indian stock market is undergoing a significant transformation as a result of the uptake of cutting-edge trading technologies like algorithmic and high-frequency trading. A commitment to ensuring a dynamic, equitable, and resilient financial ecosystem is reflected in SEBI's evolving regulations. As these technologies continue to advance, the collaboration between regulators and market participants will be key to maintaining the integrity and efficiency of the Indian financial markets.  

Rupee ends lower under pressure from the stronger dollar and probable equity outflows.

Pressured by anticipated equity outflows and the U.S. dollar index rising to a more than one-month high due to moderating expectations for U.S. rate cuts, the Indian rupee ended lower on Wednesday.The rupee closed at 83.1375 against the dollar, down 0.08% from the previous session's close of 83.07.In Asia hours, the dollar index reached its highest point since mid-December, 103.58. With a decline of 0.91%, the Korean won led all Asian currencies in decline.Federal Reserve Governor Christopher Waller on Tuesday said that while the U.S. is “within striking distance” of the Fed’s 2% inflation goal, the central bank should not rush to cut benchmark interest rates.The comments prompted investors to pare bets on aggressive rate cuts.”A combination of weakish China data and a pushback” by European Central Bank and Fed officials against early easing is weighing on risk sentiment and supporting the dollar, ING Bank said in a note. In the meantime, data released on Wednesday indicates that China's economy grew marginally slower in the October–December quarter than anticipated. According to a foreign exchange trader at a private bank, pressure on the rupee on Wednesday came from dollar bids from foreign banks, probably acting on behalf of custodian clients.The blue-chip NSE Nifty 50 shed 2.09%, while the S&P BSE Sensex lost 2.23%. This is the highest percentage drop for both the indexes since June 2022.The rupee’s weakness is unlikely to “sustain a lot as the tilt or bias on the rupee remains positive”, Arnob Biswas, head of foreign exchange research at SMC Global Securities, said.Investors now await December U.S. retail sales data due later in the day, which is expected to show a month-on-month rise of 0.4%, up  

ETtech Deals Digest: This week, startup funding dropped 70% to $102 million.

In the second week of 2024, investments in startups fell by around 70% year over year to a total of $102.1 million across 26 different agreements, indicating that the funding crunch was not going away. According to data from Tracxn, companies in seed, early, and late stages raised around $288 million between January 6 and January 12, 2023.At roughly $49 million, or 48% of the total deal value, the early stage saw the largest amount of capital raised throughout the week. $35.2 million in late-stage finance, representing 35% of the total, came next.Funding increased sequentially in the most recent week, rising more than three times in volume and nearly three times in value terms. These cutting-edge businesses closed eight deals for $35.8 million last week.The latest numbers come after a busy spell of dealmaking in December, which came as a twist at the end of 2023 – one of the weakest years for venture capital activity in the country.The financial shortage persisted as evidenced by the fact that, in the second week of 2024, investments in startups plummeted by over 70% year over year to a total of $102.1 million across 26 separate agreements. Tracxn data indicates that between January 6 and January 12, 2023, companies in seed, early, and late stages raised approximately $288 million.In the second week of 2024, investments in startups fell by around 70% year over year to a total of $102.1 million across 26 different agreements, indicating that the funding crunch was not going away. According to data from Tracxn, companies in seed, early, and late stages raised over $288 million between January 6 and January 12, 2023.  

Fireside Ventures leads a 50 crore Series A fundraising round for mental health firm Amaha.

On Wednesday, Amaha, a company focused on mental health, announced that it has raised ₹50 crore in a Series A financing round led by Fireside Ventures. ₹15.6 crore more was contributed by other angel investors.Amaha, the former InnerHour, intends to expand and improve its mental health offerings with the help of this investment. Serving more than 600 Indian locations, the Mumbai-based organization provides a range of therapies and care programs for mental health issues like anxiety, depression, bipolar disorder, ADHD, OCD, schizophrenia, and addictions.The portfolio of Fireside Ventures, an investment firm that focuses mostly on consumer-focused startups, comprises businesses in the food and beverage, personal care, kids & education, lifestyle, and home products industries. It made investments in various wellness firms last year, including The Good Bug and Inito.A portion of the increased awareness and support for mental health and wellness in recent years has come from celebrities, including actors and cricket players, as well as from a number of organizations and social media platforms. Amaha was established in 2016 and offers digital services via an app that provides self-care tools and resources, in addition to operating physical centers in Delhi NCR, Bengaluru, and Mumbai. The founder and CEO of Amaha, Amit Malik, stated in an interview with Mint that "we're looking to go beyond digital at this stage because I think there is a lot of unmet need within the industry." Amaha has been aggressively investing in infrastructure, including physical clinics and technical advancements, despite growing losses in 2023 and maintaining a positiveAmaha obtained $5.2 million from Lightbox Ventures, a venture capital firm, in 2021. Additional angel investors that took part were Hitesh Oberoi, CEO & MD of Info Edge India Pvt. Ltd., Pankaj Sahni, CEO of Medanta-The Medicity Hospitals, and Capricorn Ventures & Micasa Investments (Singapore).  

Following board approval, Fino Payments Bank requests an SFB licence from the RBI.

The Reserve Bank of India has received an application for a small finance bank (SFB) license from Fino Payments Bank, a division of Fino Paytech Limited (RBI). The RBI announced in a statement on Monday, January 8, that Fino Payments Bank had submitted an application in accordance with the SFBs' "Guidelines for on-tap licensing."The bank's board gave its approval in July 2023 to the application for an SFB license and instructed the creation of a committee to move forward with the evaluation of a reverse merger with Fino Paytech Limited, the bank's parent company. "Our SFB will be a Payments Bank++ model, different from existing players," stated Chief Financial Officer Ketan Merchant at the time. "In the first few years of operation, fee-based income will constitute 75% – 80% of the revenue."Fino's net worth is estimated to be over INR 600 Cr, but small financing banks currently need INR 200 Cr to meet their minimal capital requirements. On June 30, 2017, Fino Payments Bank commenced its business activities. Among its notable investors are Bharat Petroleum, ICICI Group, Blackstone, IFC, Intel, and LIC.