Tata Communications Divests Payment Solutions to TSI

New Delhi, Feb 28 (PTI) Tata Communications has successfully completed the divestment of its wholly-owned subsidiary Tata Communications Payment Solutions Limited (TCPSL) to Transaction Solutions International India (TSI), a majority-owned subsidiary of Australian digital payments and financial services provider Findi, according to a release issued on Friday.

Tata Communications had, on November 13, 2024, entered into a definitive agreement with TSI to divest its 100 per cent equity stake in TCPSL.

"The transaction has now been completed following the receipt of regulatory approval from the Reserve Bank of India (RBI), and the fulfilment of all conditions agreed between the parties under the relevant definitive agreement," it said.

The move aligns with Tata Communications' strategic focus on high-growth areas such as network, cloud, cybersecurity, IoT, interactions, and media services, enabling the company to sharpen its core capabilities while unlocking greater value.

Kabir Ahmed Shakir, CFO of Tata Communications, said the divestment marks a significant milestone in the company's journey to streamline portfolio and focus on areas that drive long-term growth and innovation.

"We are confident that TSI is well-positioned to drive the next phase of growth for TCPSL and will further strengthen and scale this business, ensuring continued value for customers and stakeholders," Shakir said.

The acquisition immediately equips Findi with a White Label ATM platform and licence, a payments switch and a network of 4,600 plus ATMs. Findi will also have the ability to deploy ATMs to its network of 180,000-plus merchants offering payment services (under its FindiPay and BankIT brands).

Deepak Verma, MD and CEO of TSI, said: "The acquisition of Tata Communications Payment Solutions Ltd is a critical piece in our journey to become the most trusted enabler of financial empowerment for India's underserved."

TCPSL's current ATM portfolio, white label licence and payment switch give TSI immediate scale, as well as the ability to deploy ATMs to merchant network, transforming them to a full stack financial hub, and empowering them to expand their services and better serve underbanked communities, Verma added.