Veefin Solutions Acquires 50% Stake in Singapore-based Walnut AI Pte for $2 Mn

-The deal does not involve related-party transactions and does not require regulatory approvals.

-Walnut AI’s focus on IT and information service activities positions it as an attractive partner for expanding Veefin's technological capabilities.

-The startup has made two acquisitions so far. Their most recent acquisition was EpikInDiFi on Sep 17, 2024 for $14.9 Mn.

Digital lending and supply chain financing startup Veefin Solutions Ltd, through its subsidiary Estorifi Solutions, has acquired 50% stake in Singapore-based Walnut AI Pte, for $2 million or INR 17 Cr.

This acquisition highlights Veefin Solutions' strategic investment into the technology and AI space through its subsidiary, Estorifi Solutions. By acquiring a 50% stake in Walnut AI Pte. for INR 17 Cr (or $2 million), Veefin is likely aiming to capitalize on the growth potential of AI and IT services that Walnut AI specializes in.

Walnut AI’s focus on IT and information service activities positions it as an attractive partner for expanding Veefin's technological capabilities or market presence in Southeast Asia, given that Singapore has become a hub for innovative tech companies.

This all-cash deal underscores Veefin’s commitment to making strategic acquisitions to strengthen its portfolio. Given that this was finalized in November 2024, it signals a strategic focus on international expansion and technological innovation.

Veefin Solutions' acquisition of a 50% stake in Walnut AI aims to boost revenue by accessing Walnut AI’s extensive client database across multiple geographies and creating synergies between the two companies to foster growth and innovation. The deal does not involve related-party transactions and does not require regulatory approvals.

In the quarter ending September 30, Veefin reported a 325% year-on-year increase in net profit to INR 4.1 Cr, although it declined sequentially from INR 6.25 Cr in the previous quarter. Operational revenue for the second quarter stood at INR 19 Cr, reflecting a 112% year-on-year increase and a 21% sequential rise.

Veefin was launched in 2020 by Gautam Udani, Raja Debnath. It offers SaaS pricing-based supply chain financing solutions to financial institutions, fintech, B2B marketplaces, and corporations across the globe. 

Per Crunchbase report, the startup has made two acquisitions so far. Their most recent acquisition was EpikInDiFi on Sep 17, 2024 for $14.9 Mn.