Board of Directors of Weizmann Forex Limited (WFL), a leading player in the foreign exchange and inward remittances space, on Wednesday approved the acquisition of Weizmann Impex Enterprises Ltd (WISE).
The proposed merger appointed date is April 1.
The transaction is proposed to be completed via a scheme of amalgamation and is subject to relevant regulatory approvals.
WISE, which has been authorized by the Reserve Bank of India (RBI) to issue and operate semi-closed prepaid payment instruments in India, owns JaldiCash, an integrated payments and solutions platform.
JaldiCash has an exclusive nationwide network of 18,000+ channel partners, which reaches customers across 29 Indian states and 520 districts through a B2B, assisted business model.
The platform assists business partners to distribute multiple services that currently include domestic money transfer, utility bill payments, Indo-Nepal remittances, online airline/railway ticketing and two-wheeler insurance.
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JaldiCash plans to continuously expand its portfolio and launch P2P lending, working capital loan assistance for retailers, hotel bookings and some other services.
There are significant cross-synergies with WFL's leading presence in the remittances business in India, which can be leveraged to expand the value proposition on a common platform.
"We are excited to announce this acquisition which provides substantial synergies with our existing international remittances operations. The platform enables us to offer multiple revenue streams to our existing retailer/agent network thereby increasing distribution stickiness for our core products. Some of the products offered through the platform like air ticketing are synergistic for growing our forex business as well. Since the market potential of the products offered through Jaldicash platform is significant, using the network management strengths of Weizmann Forex will help drive business of these newer products substantially," said managing director, Weizmann Forex Limited, B. Karthikeyan.
"Financial product offerings on the JaldiCash platform, particularly those related to working capital financing, will further help expand our well-entrenched distribution network," Karthikeyan added.