Niyogin Fintech acquires 50% stake in Moneyfront for Rs 12 cr

Niyogin Fintech, which provides a platform for collateral free credit to MSME's, Saturday said it has acquired 50.1 percent stake in Money front for Rs 12 crore.

"Niyogin Fintech Ltd has announced that it had entered into an agreement to acquire 50.1 percent share in Money front for Rs 12 crore," the company said in a statement.

Money front, a subsidiary of InvestDirect Capital Services, provides a platform to help clients invest in mutual funds and other fixed-income instruments.

The deal will be a non-cash equity swap transaction, the statement said, adding that investments from Niyogin, as part of the deal, will be used for acceleration of growth and business requirements.

"We are excited to partner with Money front where I believe that the combination of wealth solutions and talent, which Money front brings to the table will enable deepening of our existing client relationships while being value accretive to our shareholders," Niyogin Chairman and Co-Founder Amit Rajpal said.

The partnership will help Money front accelerate its growth by leveraging Niyogin's distribution channel and state of the art technology platform while allowing Niyogin to take a significant step forward in building its knowledge and capabilities within the wealth solutions domain, the statement said.