Japanese technology firm NTT Data Tuesday announced acquisition of a controlling stake in 63 Moons-owned payments services provider Atom Technologies for USD 9.24 million, marking its entry into the country's growing payments market.
It will be investing another USD 1.5 million as growth capital for the company, which was promoted by the scam-tainted Jignesh Shah's Financial Technologies, which was renamed as 63 Moons following the controversy.
NTT will take a 55.35 per cent stake in Atom for USD 9.24 million and invest USD 1.5 million in primary equity to take its total holding in the company to 60 per cent, 63 Moons' managing director and chief executive, S Rajendran, told reporters here.
He said the infusion of USD 1.5 million, along with debt support, will be sufficient for the growth requirements of the company for three years.
NTT Data's senior vice-president, Isao Arima, said his company did not take a full ownership of Atom as it considers it better to have a local partner in the venture.
Atom Technologies is into payment processing for merchants and installation of point of sale machines at merchant establishments, its chief executive Dewang Neralla said, adding it has a network of 1.5 lakh merchants.
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The company reported a revenue of Rs 79 crore in fiscal year 2017-18 and a loss of Rs 6 crore, he added.
As part of the acquisition, the two partners have agreed on milestones under which the company has to start delivering profits, Rajendran said, adding this will be the primary responsibility for Neralla who will hold 5 per cent in the venture along with some other investors.
It will take up to 150 days for the deal to get necessary clearances and NTT may also rename Atom.
Rajendran said there is also a possibility of NTT investing into other businesses of 63 Moons, and outlined that there are various areas holding a potential for partnerships.
He said the company had been looking for a strategic partner in Atom since 2014 because of "lot of problems in doing business" and "uncertainty around us (63 Moons)".
There is a need for the "clouds" surrounding the company to clear before it starts working on the other deals, Rajendran said.
He, however, exuded confidence that all the matters in which 63 Moons is stuck right now will be resolved by the end of the year.
He welcomed the Bombay High Court order earlier this year that de-freezed accounts of 63 Moons which were frozen by the investigative and law enforcement agencies.