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Incorporated in 2017, KFin Technologies Limited is a leading technology driven financial services platform providing comprehensive services and solutions to the capital markets ecosystem including asset managers and corporate issuers across asset classes in India and provide several investor solutions including transaction origination and processing for mutual funds and private retirement schemes in Malaysia, Philippines and Hong Kong. Company provide several critically important services to the Indian capital markets ecosystem. It provide a wide array of investor and issuer solutions. The Company also offer asset servicing products including a distributor platform, an investor platform, and an online transaction platform together with data analytics.

* It is India’s largest investor solutions provider to Indian mutual funds, based on number of AMC clients serviced. It is providing services to 24 out of 41 AMCs in India, as on September 30, 2022

* As on September 30, 2022, KFin Technologies Limited is the only investor and issuer solutions provider in India that offers services to asset managers such as mutual funds, alternative investment funds ("AIFs"), wealth managers and pension as well as corporate issuers in India.

* KFin Technologies Limited is servicing 301 funds of 192 asset managers in India as on September 30, 2022, representing 30% market share based on number of AIFs being serviced.

* It is one of the three operating central record keeping agencies (“CRAs”) for the National Pension System (“NPS”) in India as on September 30, 2022.)

* Company is the largest issuer solutions provider in India based on number of clients serviced, as on September 30, 2022.

Outlook & Valuation:

KFin Technologies Limited is a leading technology-driven financial services platform. The company has a diverse multi-asset service platform and this unique "platform-as-aservice" business model. It has the advantage of longstanding client relationships, and its asset-light business model is also a plus. However, the company’s financial results have been mixed. It reported a significant increase in revenue over the last 3 years and 6 months. However, the company's margins declined in FY20, and it also incurred a loss in FY21, but it recovered and generated strong margins recently. Secondly, this issue is complete OFS and the company will not receive any proceeds from this IPO. Finally, the issue is fully priced and coming at a P/E valuation of 38.77. Thus, after considering all the factors, we recommend to avoid this issue.

KEY MANAGERIAL PERSONNEL

* Vishwanathan Mavila Nair is the Chairman and Non-executive Director of the Company. He has been associated with the Company since November 22, 2018. He has 48 years of experience in financial services and advising fintech start-ups.

* Venkata Satya Naga Sreekanth Nadella is a Managing Director and CEO of the Company. He has been associated with the Company since June 28, 2018. He has over 20 years of experience.

* Vivek Narayan Mathur is the Chief Financial Officer of the Company. He has been associated with the Company since January 23, 2020. He has over 26 years of experience.

* Gopala Krishnan Giridhar is the Chief Business Development Officer of the Company. He has been associated with the Company since November 17, 2018. He has over 25 years of experience in the financial services.

* Hanisha Vadlamani is the Chief Branding Officer of the Company. She has been associated with the Company since February 15, 2021.

* Alpana Uttam Kundu is the Company Secretary and Compliance Officer of the Company. She has been associated with the Company since June 22, 2020.

COMPETITIVE STRENGTHS

*  Scaled platform with strong track record of growth and market leadership.

* Diverse multi-asset servicing platform.

* Unique “platform-as-a-service” business model providing comprehensive end-to-end solutions.

* Deeply entrenched, long-standing client relationships with a diversified and expanding client base.

* Asset-light business model.

* Experienced management team.

KEY STRATEGIES

* Maintain the leadership in current businesses and further deepening the relationship with existing clients.

* Further expand the client base and market share through enhanced sales and marketing.

* Investing in technology solutions and product innovation.

* Focused and selective international expansion.

* Attract and retain talent especially in technology and business development functions

KEY CONCERNS

* Entire IPO proceeds are OFS and company would not get anything from this.

* There are outstanding legal proceedings involving the Company, Subsidiaries, Group Companies and certain of its Directors.

* Significant disruptions in the information technology systems or breaches of data security could adversely affect the business and reputation.

* Competition could negatively affect its ability to maintain or increase the market share and profitability.

* In the last 3.5 years, they derived over 50%, of its revenue from operations from its top 5 customers and the loss of one or more such client could adversely affect company business.

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