Findi Limited, a digital payment and financial services provider, has recently secured a significant contract with the State Bank of India (SBI), marking a major milestone in its expansion and strategic positioning in the Indian market. This 10-year contract, with the possibility of a 3-year extension, involves Findi providing 4,219 ATMs across India, with an initial deployment of 3,375 ATMs and an additional 844 ATMs within a year from the contract's start.
The financial implications of this deal are substantial, with the contract expected to generate revenue in the range of $550 million to $620 million and an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) of $250 million to $280 million over the contract's duration. Additionally, an impressive internal rate of return (IRR) of over 35% is anticipated.
This contract is not just a business expansion for Findi but a strategic move aligning with the company's long-term vision in India. It signifies a commitment to support the Indian government's objective of enhancing financial inclusion and represents a step towards transforming into a full digital payments bank. The endeavor aligns with India's broader transition from a cash-based to a digital economy.
Findi's journey in this sector began in 2016, providing ATMs to SBI through a third-party outsourcing contract. This new direct contract with SBI, India's largest bank, consolidates Findi's position in the market and expands its ATM network to over 20,500, making it one of the largest non-bank ATM operators globally. The contract also includes a white-label license, allowing Findi to rebrand existing SBI ATMs as Findi ATMs, adding over 3,000 more to its network. This license offers strategic advantages, such as integrating ATM and digital payment services and facilitating potential acquisitions.
Findi's Chairman, Mr. Nicholas Smedley, expressed confidence in the contract's role in bolstering the company's financial momentum and establishing it as a key player in India's fragmented digital payments and financial services sector. The contract is expected to be fully funded by the company's free cash flow and new bank facilities.