Perfios to acquire fintech platform Karza for Rs 600 crore

Industry:    

Perfios Software Solutions, a Bengaluru-based fintech software firm backed by Warburg Pincus and Bessemer, is buying Karza Technologies, a banking and financial intelligence solution provider, for around Rs 600 crore.

Perfios earlier last month raised around Rs 520 cr from Warburg Pincus and Bessemer, some of the existing investors. It will use the funds to part-finance the acquisition of Karza Tech.

Mumbai-based Karza offers solutions that enable onboarding automation, systemic fraud prevention and business intelligence enabled through its superior data engineering and deep tech applications.

Warburg Pincus is the largest shareholder in Perfios with a 41% stake, while long-time investor Bessemer holds 32.1%, according to the regulatory filing. Founded in 2009, by V R Govindarajan and Debasish Chakraborty, Perfios is a credit decisioning and analytics startup operating in B2B and B2C segments. It claims to extract, categorise, and analyse thousands of data-types in real-time, enhancing the prudential quotient in lending decisions.

“Karza’s deep focus in onboarding automation and fraud prevention through superior data engineering and deep tech application make them a unique player in the market,” said V R Govindarajan, co-founder of Perfios. “The combined entity with enormous synergies will develop plenty of innovative and disruptive solutions for the market. Customers now deal with a single trusted entity in the credit decisioning space.”

Perfios has also raised approximately $100M from existing investors Warburg Pincus, Bessemer Venture Partners, and certain new investors. The company plans to use the capital to continue to innovate and invest in best-in-class products in the credit decisioning, analytics, fraud and risk space, scale-up world-class engineering and data science teams, expand into new geographies, as well as continue to make strategic acquisitions and invest in business partnerships across the value chain.

“Together, we can be a very formidable entity that can add so much value to our customers. It is a great win-win situation for all stakeholders with our customers getting the benefit of the combined entity,” said Gaurav Samdaria, co-founder of Karza.

Technology investments have seen a more than three-fold increase in 2021 compared with a year ago, London-based industry tracker Preqin said. India’s startup ecosystem has notched up record investment of nearly $ 36 billion in 2021, as demand for digitisation grew manifold amid the Covid-19 pandemic, compared with $11.2 bln logged during the same period a year ago, the data showed.

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