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Fino Payments Bank IPO Analysis


Fino Payments Bank limited is to come up with an initial public offer to raise funds from the public. Issue size of the offer is Rs 1,300 crore, which comprises fresh issue of Rs 300 crore and an offer for sale of 15.6 million equity shares.  The face value of each share is Rs 10. This issue is a book built issue; this IPO is opening for subscription from 29th of October to 2nd November, date of allotment of shares will be on 9th November and the listing date of IPO is on 12th November 2021.

About Company

Fino payments bank limited is a fintech company, which is present in 94% of India’s districts with over 6.41 lakh banking outlets, 54 Bank Branches and 143 Customer Service Points.

Fino Payments is a growing fintech company offering a wide portfolio of digital financial products and services in India. The company has a pan-India distribution network and its' major products and services includes:

  • Saving Accounts (Shubh Savings Account, Pratham Savings Account, Saral Savings Account, Suvidha Savings Account, Bhavishya Savings Account, and Jan Savings Account)
  • Current Accounts (Pragati Current Account and Sampann Current Account)
  • BPay (Mobile Banking)
  • Cards Services (Classic Debit Card, Platinum Debit Card, Prepaid Card)
  • FASTag
  • Sweep Account Facility
  • Referral Lending
  • Insurance (Life Insurance and Health Insurance)

The company's merchants facilitate them in cross-selling their other financial products and services such as third-party gold loans, insurance, bill payments and recharges. Fino Payments also manages a large BC (Business Correspondents) network on behalf of other banks.

For revenue generation, the company relies on fees and commissions from their merchant network and strategic commercial relationships. The company is looking to target a population of India which has low levels of financial literacy and technology use and typically does not have access to even basic banking services. In 2020, the Ministry of Electronics & Information Technology ranked Fino payments third among banks in facilitating digital transactions in India. According to CRISIL, the company also has the largest network of micro-ATMs and the third-highest deposit growth rate in FY' 2021

Bank is having 6.42 Lakh registered merchants and 26 Lakh Bank Accounts on its platforms. More than 435 million transactions have been done in the fiscal year 2021.

Bank covers 94% pin-codes across India, 2.5 Lakh micro ATM devices and covers more than 55% market share of micro-ATMs.

Industry Overview

India’s Fintech industry’s current valuation is around USD 31 billion, which is estimated to grow at a CAGR of 22% to USD 84 billion by 2025.

Fintech industry’s transaction value size for 2019 was USD 66 billion which is estimated to grow at a CAGR of 20% to USD 138 billion by 2023.

Strengths of the Company

  • DTP framework- Distribution, Technology and Partnership framework

Distribution- Company is having access of vast established merchant network, dedicated and focused branch network and large business correspondent network

Technology- Company's “phygital” (physical plus digital) model for delivering products, dedicated mobile banking applications for merchants and customers, a “neo banking” mindset, digital on-boarding, e-KYC and company's in-house technology expertise and culture of application-led innovation which includes proprietary technology

Partnership- Strategic commercial relationships, product portfolio expansion opportunities, greater customer sourcing and leveraging the open banking regime via API

  • A technology focused business model with an advanced digital platform;
  • Customer centricity and innovation at the core of business;
  • Operational experience and expertise;
  • Company's business model and operations benefit Indian society by bringing India’s un-served and underserved population into the main stream of banking system, as of March 2020 company had 18,191 female merchants which increased to double to 32,084 as of March 2021
  • Highly experienced and committed leadership team, supported by a marquee investor (ICICI Bank Limited, Intel Capital Corporation, International Finance Corporation, HAV3 Holdings (Mauritius) Limited, Blackstone GPV Capital Partners (Mauritius) VI-B FDI Limited and BPCL) base in Promoter and shareholder.

Financials of the Company

Company drastically reduced their losses and changed it into profits, for fiscal year 2019 company had a loss of Rs 62 crore and in the fiscal year 2021 company reported the profit of Rs 20 crore.


            FY 2019

           FY 2020

            FY 2021





Total Assets




Total Revenue




Profit After Tax (PAT)




All amounts are in INR crore

Risk Factors

  • Company works in a highly competitive market
  • Primary drivers of company’s revenue are the fees and commissions which they charge for their services.
  • Company relies extensively on its information technology systems any disruption or failure in such system can affect the cash flows of the company.
  • Payment Banks in India are subject to various regulations prescribed by the Banking Regulation Act and the Reserve Bank of India (RBI).
  • As of March 31, 2021, approximately 45% of its merchants were located across these three states and revenue from three states (Uttar Pradesh, Bihar, and Madhya Pradesh) in the financial year 2021 represented 43% of its total revenue for such period.
  • Company is dependent on merchants and strategic commercial relationships for service and product distribution network, as well as the relationships with the BCs that they manage on behalf of other banks.
  • Company has incurred net loss of Rs 62.38 crore and Rs 32.04 crore in the financial years 2019 and 2020, respectively.

Comparison with listed Peers

There are no listed companies in India whose business portfolio is comparable with the business and comparable to scale of operations of this company.


  • Company to utilize few of its proceeds for capital expenditure
  • Few proceeds of the company will be utilized for general corporate purposes

My Observation

Company has drastically decreased its losses and changed it into profits, for the fiscal year 2019 company accounted a net loss of Rs 62 crore which has decreased to Rs 32 crore for the fiscal year 2020, and in the fiscal year 2021 company has changed it into profit and accounted the net profit of Rs 20 crore.

This IPO seems good to invest in and Investors are suggested to invest in this IPO for long term gains and can also consider this for listing gains.

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