Findi Limited has won a significant contract to deploy 900 additional ATMs for Union Bank of India, promising up to $80 million in revenue over eight years and reinforcing its position in the Indian financial services market.
- 900 new ATMs to be deployed across India within six months
- Contract valued at A$75–80 million revenue and A$33–38 million EBITDA over 7+1 years
- Expected annualised revenue boost of A$10–11 million and EBITDA of A$4.5–5 million
- Capital expenditure of approximately A$12 million with an 18% IRR expected
- Findi’s total brown label ATM portfolio grows to 8,900 units
Findi Deepens Partnership with Union Bank of India
Findi Limited (ASX: FND), a digital payments and financial services provider, has secured a substantial new contract through its majority-owned subsidiary, Transaction Solutions International (India) Pvt Ltd (TSI). The agreement with Union Bank of India (UBI) involves deploying an additional 900 ATMs across the country over a seven-year term, with an option to extend for an additional year.
This contract, valued between A$75 million and A$80 million in revenue and expected to generate EBITDA of A$33 million to A$38 million, marks a significant expansion of Findi’s ATM footprint in India. The rollout is slated to begin in late Q2 or early Q3 of FY26 and is anticipated to be completed within six months, underscoring Findi’s operational capabilities and strategic execution.
Financial Impact and Strategic Significance
The deal is expected to contribute an additional A$10 to A$11 million in annualised revenue and A$4.5 to A$5 million in EBITDA once fully deployed. With a capital expenditure commitment of around A$12 million, the project is projected to deliver an attractive internal rate of return (IRR) of approximately 18% over the contract duration.
Importantly, this contract enhances Findi’s brown label ATM portfolio to 8,900 units, complementing its recent acquisition of Tata Communications Payment Solutions Ltd (TCPSL), which adds 4,829 white label ATMs. This dual expansion positions Findi as a formidable player in India’s underbanked financial services sector, leveraging both brown and white label ATM networks.
Market Position and Future Outlook
Findi’s Executive Chairman, Nicholas Smedley, highlighted the significance of this contract as a testament to TSI’s professionalism and pricing power, noting the contract was awarded at an interchange rate of Rs. 17 per financial transaction. This reinforces Findi’s ability to secure competitive deals with major Indian banks and reflects confidence in its service delivery.
Looking ahead, Findi aims to consolidate its recent acquisitions and accelerate its white label ATM and payments bank strategies. These initiatives are designed to provide comprehensive financial services to India’s underbanked population, potentially unlocking further growth and shareholder value.
Overall, this contract not only strengthens Findi’s revenue base but also solidifies its strategic footprint in one of the world’s fastest-growing digital payments markets.
Bottom Line?
Findi’s expanded ATM network signals robust growth potential but hinges on timely deployment and market dynamics.
Questions in the middle?
- How will Findi manage the operational challenges of deploying 900 ATMs within six months?
- What impact will the expanded ATM network have on Findi’s competitive positioning against other digital payment providers in India?
- How will fluctuations in transaction volumes and interchange rates affect the contract’s profitability over time?