Vakrangee’s Strategic Investment in Vortex Engineering: Paving the Way for Fintech Growth

On June 3, 2024, Vakrangee Limited (VL) announced its finalised Share Purchase Agreement with Tata Capital Innovations Fund, securing an 18.5% equity stake in Vortex Engineering Private Limited (Vortex). This move will help the company to emerge as a prominent fintech entity in rural India.

Vortex Engineering is a pioneering force in Automated Teller Machines (ATMs) and multi-vendor ATM management software. Vortex has redefined the ATM landscape by introducing a cost-effective range of eco-friendly ATMs, delivering exceptional returns on investment. The company’s world-class ATM monitoring and management software facilitates the digital evolution of ATM channel management with unparalleled cost efficiency across the industry. With its commitment to financial inclusion on a global scale, Vortex is reshaping self-service banking through its dependable and sustainable range of products and solutions.

The company holds a distinguished position in switch-connected cash management technology, boasting an impressive portfolio of 9 patents in ATM and Cash Dispensers, aligning with the Make in India initiative. With a track record of dispatching over 10,000 ATMs across regions spanning India, Africa, and South Asia, Vortex complements its hardware offerings with software products tailored for ATM functionality.

Vortex excels as a frontrunner in switch-connected cash management technology, boasting nine patents in ATM and Cash Dispensers, aligned with India’s self-reliant initiative, Make in India. Additionally, Vortex has introduced an innovative remote ATM monitoring software solution called ‘PERFO,’ a versatile cross-platform and cross-vendor tool.

Responding to the same, Mr Dinesh Nandwana, Managing Director and Group CEO of Vakrangee Limited said, “This is a strategic investment that will help the Company have a complete backward integration in place, thereby unlocking future growth opportunities, leveraging cost synergies, and leveraging technology know-how. Our move into this acquisition is another validation of our set targets of 3 lakh+ outlets and Minimum 15,000+ ATMs by 2030.”

About Vakrangee Limited

Established in 1990, Vakrangee Limited has become one of India’s premier Last-Mile Distribution Platforms. With a widespread presence across India, Vakrangee facilitates real-time access to various banking and financial services, ATM facilities, insurance solutions, e-governance initiatives, e-commerce platforms (including healthcare services), and logistics services.

On June 3, 2024, the share price of Vakrangee Limited opened at ₹22.80, touching the day’s high of ₹23.20 as of 03:30 PM on the NSE

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. The information is based on various secondary sources on the internet and is subject to change. Please consult with a financial expert before making investment decisions.