FPBL is a scheduled commercial bank serving the emerging Indian market with its digital-based financial services. The company is a wholly-owned subsidiary of Fino Paytech and is backed by marquee investors like Blackstone, ICICI Group, Bharat Petroleum, and IFC.
The fintech bank turned profitable in the fourth quarter of FY20 and has consistently enhanced its profitability since. This makes FPBL the first profitable fintech to file for an IPO.
Over the last few years, FPBL has witnessed a steep surge in transaction volumes on the back of digitization and proliferation of its banking points. As stated in the DRHP, in FY21, the payment bank’s platform has facilitated more than 434 million transactions having a gross transaction value of Rs 1.32 lakh crores. It has the largest network of micro ATMs as of March 2021, with a market share of 55%, a robust merchant network of 6.4 lakhs, and 25.7 lakh bank accounts.
A digital-based transaction-focused approach with no credit risk has enabled the growth of FPBL in times wherein the financial sector was looming over challenges. Its revenue for FY21 stood at Rs 791 crores that grew at a CAGR of 29% in the last three years. The bank registered a profit of Rs 20.5 crores in FY21 with an annual average ROE of 15%, the DRHP states.
Axis Capital, CLSA India, ICICI Securities, and Nomura Financial Advisory Services are the bankers for the issue.
