Thoughts on the following possibly. I think India1 has approx 13,000 ATMs, hence if this occurred would bring Findi - 30,000 ATMs (mentioned as a target about 18 months ago) plus probably - 250,000 digital payment locations by close to the IPO in March 2026.
Rationale for Findi (ASX: FND) Acquiring the BTI India1 ATM Business
1. Expansion of White Label ATM (WLA) Market Share
•Strengthens Findi’s footprint in India’s growing ATM market.
•India1 ATMs is one of the largest independent WLA operators in India.
•Provides immediate scale in a fragmented industry.
•India1 ATMs initially planned an IPO in 2021 but halted the process, possibly due to market conditions or strategic shifts.
2. Existing White Label ATM License and Cost Efficiencies
•Since acquiring Tata’s ATM business, Findi now holds a white label ATM license and operates its own payments switch.
•The payments switch allows Findi to reduce per-transaction costs, improving margins and competitiveness.
•Acquiring BTI India1 ATMs allows Findi to leverage these efficiencies at scale, maximizing profitability.
•With the purchase of Bankit, Findi further strengthens its last-mile banking services, creating a seamless cash and digital payments ecosystem.
3. Revenue Growth and Interchange Fee Benefits
•RBI-set interchange fees:
•₹17 per cash withdrawal.
•₹6 for non-financial transactions.
•Increased ATMs → Higher revenue from transaction fees.
•India1 ATMs has strong penetration in rural and semi-urban areas, maximizing fee collection.
4. Cost Efficiency and Operational Synergies
•Findi has expertise in managing ATM networks and digital payments.
•Acquisition enables:
•Economies of scale in maintenance, cash loading, and support.
•Lower per-ATM operational costs → Improved margins.
•TSI India has stopped managing BTI India1 ATMs, opening an opportunity for Findi to optimize operations and drive efficiencies.
5. India’s Growing Cash Economy and Digital Banking Push
•Cash transactions remain strong, especially in rural areas.
•India1’s ATMs serve cash-dependent regions.
•Positions Findi to benefit from both cash and digital payment trends.
6. Institutional Shareholder Base and Valuation Impact
•India1 ATMs has historically had a large institutional investor base, which has remained invested over time.
•A Findi acquisition could provide institutional investors with a clear exit strategy or renewed confidence in a stronger operator.
•Strengthens Findi’s position as a leading ATM operator.
•Enhances investment appeal, attracting further institutional interest.
•Potential for higher stock valuation based on growth potential.
7. Strategic Leverage for Future Digital Payment Integration
•Findi is expanding into digital payments via FindiPay.
•Bankit acquisition enhances Findi’s ability to offer banking services through its ATM network.
•India1’s ATM network provides a physical touchpoint for digital services.
•Opportunity to build a hybrid cash-digital ecosystem.
Conclusion
Acquiring BTI’s India1 ATM business aligns with Findi’s strategy by:
•Expanding ATM operations.
•Leveraging its white label ATM license and payments switch for cost efficiencies.
•Strengthening last-mile banking services through Bankit integration.
•Securing regulatory advantages.
•Reducing costs through operational synergies.
•Strengthening market presence in India’s cash economy.
•Leveraging a strong institutional shareholder base for future growth opportunities.
This acquisition accelerates Findi’s growth and enhances its position in both ATM operations and digital payments, while integrating an asset that previously sought an IPO, reflecting its intrinsic market value.
