Accura Infotech in talks to raise $36m from PE firms

"This will be the first time that the company will partner with private equity, but the interest shown by investors has been very good," Navneet Singh Gogia, co-founder and promoter of Accura, told Live Mint.

India now has close to 90,000 ATMs, but is still one of the least penetrated markets in the world. There are 59 ATMs for every million people, a third of the amount in China, but each machine handles an average 53,595 transactions each year, 40% higher than China and three times the US level.

Hoping to improve service levels, a consortium of Indian state-run lenders has in recent months launched an ambitious tender: to outsource 63,000 ATMs across various service providers.

Accura plans to set up and operate more than 6,000 ATMs outsourced by 26 public sector banks in Uttar Pradesh by the end of the 2014 financial year. "Our contract with the banks will be for eight years and the payment will be on a per transaction basis at around INR7.9 per transaction," said Zahid Ali Khan, assistant vice-president of Accura Infotech.

Mumbai-based Motilal Oswal Securities has been hired to find an investor.

Just one month ago, IFC, the investment arm of World Bank, committed $2.7 million to Vortex Engineering, an Indian ATM manufacturer already backed by Tata Capital and Bamboo Finance. In March, The Blackstone Group and Bain Capital were also reportedly negotiating to buy the ATM business of Euronet Worldwide India. Other private equity names involved the sector include TPG Capital, Sequoia Capital and New Enterprise Associates (NEA).

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• Topics
• South Asia
• Financials
• Expansion
• India
• Financial Services