The Hindu Business Line : Financial Software to raise Rs 250 cr; mulls IPO, PE funding

Chennai, Jan 18 Financial Software and Systems (FSS) plans to raise Rs 250 crore through equity or debt to expand operations in India and abroad, over the next few months. It is considering options such as an IPO and PE funding, according to the company’s Managing Director, Mr Nagaraj V. Mylandla.

Carlyle Group, a private equity firm of the US, has already invested in the company. FSS has so far spent $25 million on “infrastructure, people and products,” he told Business Line.

The Chennai-based company enables electronic payments for banks through various modes, including ATMs and PoS (points of sale). It will end this year with revenues of around Rs 160 crore, including Rs 25 crore from selling products of ACI Worldwide. Last fiscal, the revenue was Rs 110 crore, he said.

Mr Mylandla said FSS will spend around 60 per cent of the additional funds on the company’s product FSS Net. This product enables banks to outsource from FSS their entire e-payment services, including ATM, PoS and mobile transactions. The rest of the amount will be spent on software development and technology.

FSS’ end-to-end solutions include ATM / PoS switching, Internet, mobile, anywhere banking, and card processing and management systems. The company’s customers include the banks, manufacturers of ATMs such as NCR and Diebold, PoS vendors such as Verifone and Ingenico and banking solutions vendors such as TCS and Infosys, Mr Mylandla said.

New centre

FSS will construct its FSS Techno Park in the Sipcot IT Park at Siruseri, the IT Corridor of Chennai, in six months. It will spend Rs 25 crore on the facility, which will house over 1,000 professionals. The company recently got approval for the land from the State government, Mr Mylandla said.

FSS has facilities at the Tidel IT Park in Chennai and in Mumbai and employs 750 personnel.

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