Kfin Technologies bets big on financial services opportunities in the overseas markets and expects the alternate investment industry and data aggregator business to be a major driver in India.
Sreekanth Nadella, CEO, KFin Technologies told businessline that the mutual fund industry has assets worth $500 billion and AIF has an asset under management of about $100 billion in India.
Of this, Kfin manages assets worth $200 billion of mutual fund AUM and about $15 billion from AIF in India.
“This asset can be equated to an opportunity of $180 trillion in the market elsewhere in the world and globally there is no competition from Indian companies in this space. So, for us, that is the biggest opportunity to grow, and we are putting a lot of focus on it,” he added.
Market expansion
Kfin Technologies has created critical industry solutions for the alternative asset classes and wants to utilise them to tap into the fast-growing sector.
With an asset under management of about ₹9 lakh crore, the AIF industry is set to touch ₹43.64 lakh crore by 2028 with growing investor affluence, according to recent industry estimates.
Featuring among the top 10 companies in the country in terms of the number of unique individuals served, Kfin expects the account aggregator business to emerge as a major revenue generator.
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Nadella said the company services 13 crore individual investors across equity, bonds, mutual funds and AIFs and there is no other company in India that serves customers across all investment classes.
For instance, he said the company’s competitor CAMS is in mutual funds but does not do equities and bonds, while Link Intime has a presence only in equities and bonds. The number of investors and data managed by the company is phenomenal, he said.
“While we have access to all this data, we cannot leverage it now, but we are very excited about the account aggregator and the Digital Personal Data Protection Bill,” said Nadella.
With the advent of the DPDP Bill and account aggregation, investors will become the owners of their data and with their consent, the company can do a lot with that data for customers in terms of analytics and provide valuable insights, he said.
“We have created the country’s first big-data platform for asset management and distribution called Digix, which has numerous applications,” said Nadella.