Tata Communications has informed the Bombay Stock Exchange (BSE) that it has completed the divestment of its wholly-owned subsidiary, Tata Communications Payment Solutions Limited (TCPSL), to Transaction Solutions International (India) Pvt Ltd (TSI), which is the Indian arm of Australian digital payments and financial services company Findi.

On February 4, the Reserve Bank of India (RBI) gave its regulatory approval to Tata Communications to sell its entire stake in Tata Communications Payment Solutions Limited (TCPSL) to the Indian arm of Australia-headquartered Findi. The deal, which was first announced in November 2024, is valued at Rs 330 crore, with an additional Rs 75 crore, based on interchange rate adjustments.

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Tata Communications informed the exchange, stating, “We had informed the exchanges about Tata Communications Limited entering into a share purchase agreement dated November 13, 2024, with Transaction Solutions International (India) Private Limited for the sale of Tata Communications Limited’s entire stake in its wholly-owned subsidiary, Tata Communications Payment Solutions Limited, subject to satisfactory completion of the conditions precedent as stipulated under the share purchase agreement, including regulatory and other approvals from the Reserve Bank of India and any other authority as may be necessary and expedient; and subsequent receipt of a no-objection certificate from the RBI.”

“After completing all conditions precedent to the transaction as envisaged in the share purchase agreement, the transaction is deemed complete and effective from February 28, 2025. As a result, Tata Communications Payment Solutions Limited has ceased to be a subsidiary of Tata Communications Limited with effect from February 28, 2025,” according to the exchange filing.

On November 13, 2024, Tata Communications entered into an agreement with Findi to divest its 100% stake in Tata Communications Payment Solutions Limited (TCPSL). “The transaction has now been completed after 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,” according to a Tata Communications statement.

“For Tata Communications, this move aligns with its 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,” as per the Tata Communications statement.

“For Findi, this acquisition marks a strategic expansion of its financial services ecosystem, enhancing its capabilities in digital payments and ATM operations. The acquisition immediately equips Findi with a White Label ATM platform and license, a Payments Switch, and a network of over 4,600 ATMs. Additionally, it enables Findi to deploy ATMs across its extensive network of 180,000+ merchants (under its FindiPay and BankIT brands),” the statement mentioned.

Tata Communications CFO Kabir Ahmed Shakir said, “This divestment marks a significant milestone in our journey to streamline our 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.”

Findi’s MD & CEO Deepak Verma 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 us immediate scale, as well as the ability to deploy ATMs to our merchant network, transforming them to a full stack financial hub, and empowering them to expand their services and better serve underbanked communities.”

“Both Tata Communications and Findi are committed to ensuring a seamless transition for employees, customers, and partners. This milestone represents a win-win opportunity, unlocking new growth avenues for both companies and delivering greater value to shareholders,” as per the statement.