Actis invests $40m in AGS Transact Technologies

Founded in 1992 by Ravi Goyal, AGS has installed in excess of 14,000 ATMs for over 70 banks in India. Customers include Axis Bank, ICICI Bank, HDFC Bank and Yes BAnk. The company also supplies specialized equipment, and automated solutions for retailers, petroleum and paint companies.

Actis' investment comes after TPG Capital paid around $33.6 million for a 20% stake in AGS last June.

"Actis is delighted to back accomplished entrepreneur Ravi Goyal and AGS, a market leader in ATM outsourced services and Retail Automation Solutions, operating at the forefront of an industry expanding at a tremendous pace," said J.M. Trivedi, head of Actis South Asia.

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.

In August, Mumbai-based Accura Infotech was reportedly in advanced talks with private equity investors to raise up to INR2 billion ($36 million) to set up and operate ATMs for public sector banks in Uttar Pradesh. The company was looking at selling as much as 17% of its equity.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• South Asia
• Financials
• Expansion
• Actis Capital
• TPG Capital
• India
• Financial Services