InvestorQ : What is the synergy in ICICI Bank acquiring a stake in a small Fintech company?
Rutuja Nigam made post

What is the synergy in ICICI Bank acquiring a stake in a small Fintech company?

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6 months ago
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One of India’s largest private sector banks, ICICI Bank, has committed to acquire 9.09% stake in Myclassboard Educational Solutions Private Limited. This is an educational technology online platform. The purchase will be made for a cash consideration of Rs.4.50 crore, which is actually quite small if you consider the asset book of ICICI Bank.

ICICI bank has also confirmed the above news in a regulatory filing to the stock exchanges. Since this is for a 9.09% stake in the Edtech company, it values the online edtech platform at around Rs.50 crore. In the last few months, many online education companies have seen their valuation swell to well beyond a billion dollars on the lockdown opportunity.

Myclassboard offers an online school management platform and it had a turnover of Rs.12 crore in FY-20. This is in largely in sync with ICICI Bank’s plans to keep adding valuable assets and franchises to its online digital portfolio through inorganic and strategic purchases. The transaction is expected to be completed by Feb-21, and is significant although small.

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