Commercial Credit and Finance to buy 20% stake in Pay & Go for Rs. 180 m

Tuesday, 17 October 2023 01:44 - - {{hitsCtrl.values.hits}}

Picks up 2.3% stake initially for Rs. 27 m; balance in 18 months in foray into fintech

Commercial Credit and Finance PLC is foraying into fintech with a planned acquisition of nearly 20% stake in Mega Pay Ltd. which provides payment services operating under the ‘Pay & Go’ brand name.

Commercial Credit said it entered into an agreement last week for the acquisition and initially picked up nearly 3% stake for Rs. 27 million.

“The remaining ownership stake will be acquired in accordance with the agreed-upon payment plan, with the process expected to be concluded within 18 months from the date of the agreement,” Commercial Credit said in a filing to the Colombo Stock Exchange. “We are committed to adhering to all the conditions outlined in the agreement, ensuring compliance with regulatory requirements throughout this transaction,” it added.

Mega Pay Ltd., is a company duly incorporated under the laws of Sri Lanka, and provides payment services operating under the ‘Pay&Go’ brand name on behalf of numerous private entities, government bodies, charities and financial institutions.

This is facilitated through four platforms: a mobile application, a website, point of sale (POS) terminals and kiosks.

Pay & Go is among three leading players in this segment whilst Commercial Credit is among the first finance companies to invest in a fintech startup. Commercial Credit as at 30 June, had assets worth Rs. 102 billion and Rs. 14 billion in retained earnings.

CEO Roshan Egodage in the 2022 Annual Report said Commercial Credit and Finance future plan entails a strong focus on digitalization, recognising it as a crucial driver for growth and success.

“By embracing digital platforms, we aim to expand our customer base, meet evolving expectations, and deliver innovative services. Leveraging data analytics and artificial intelligence will enable us to personalise our offerings and cultivate strong customer relationships. Collaborating with fintech partners will provide specialized expertise and cutting edge technologies, positioning us as leaders in the digital landscape,” Egodage added.