Magellanic Cloud Limited, a publicly listed digital technology company, has announced a strategic acquisition of Finoux Solutions Private Limited (FSPL), a fintech company focused on digital transformation in the BFSI (Banking, Financial Services, and Insurance) sector. The acquisition is being valued at approximately ₹43.8 crore, and will be carried out through a combination of 80% equity swap and 20% cash consideration, making Magellanic Cloud the 100% owner of FSPL upon completion.

About Finoux Solutions Private Limited

Finoux Solutions Private Limited, founded on 3rd January 2013, is an Indian fintech company that offers a broad range of technology products, frameworks, and services specifically targeted at the BFSI sector. The company has gained a reputation for delivering high-impact digital solutions that enhance operational efficiency, customer engagement, and regulatory compliance.

Financial Performance Overview

Finoux Solutions has shown consistent revenue growth over the past three years, reinforcing its stability and reliability as a fintech service provider:

• FY 2022-23: ₹2018.50 Lakhs Revenue | ₹88.97 Lakhs Net Profit

• FY 2023-24: ₹2619.26 Lakhs Revenue | ₹92.45 Lakhs Net Profit

• FY 2024-25 (Provisional): ₹2835.59 Lakhs Revenue | ₹81.77 Lakhs Net Profit

While the net profit showed a slight dip in FY25, the steady rise in revenue highlights the strong market demand and trust for its digital solutions.

Capital Structure of FSPL

• Authorised Share Capital: ₹5,00,000 divided into 50,000 equity shares of ₹10 each

• Paid-Up Share Capital: ₹1,00,000 divided into 10,000 equity shares of ₹10 each

This relatively modest capital structure indicates a lean operation with high scalability potential.

Nature and Terms of the Acquisition

Magellanic Cloud has agreed to acquire 100% equity shares of Finoux Solutions, positioning FSPL as a wholly owned subsidiary post-deal. The approximate acquisition cost is ₹43.8 crore, subject to closing adjustments as per the Share Purchase Agreement.

Breakdown of Consideration:

• 80% via equity swap, where Magellanic Cloud will issue shares to existing shareholders of FSPL.

• 20% via cash payment, providing liquidity and immediate return to the selling shareholders.

Not a Related Party Transaction

The acquisition does not fall under related party transactions, and none of the promoter group, group companies or promoters have any interest in the entity being acquired. The deal is executed at arm’s length, signifying an unbiased, market-driven valuation and transaction structure.

No Governmental or Regulatory Approvals Required

As per the information disclosed, the transaction does not require any external regulatory or governmental approvals, which streamlines the process and is expected to ensure a faster closure.

Completion Timeline

The indicative time period for completion is around 20 months, subject to the fulfillment of all closing conditions stated in the Share Purchase Agreement. This suggests a phased integration strategy, possibly allowing time for operational alignment and tech stack compatibility.

Strategic Objectives Behind the Acquisition

The acquisition of FSPL is of strategic importance to Magellanic Cloud. It aligns with the company's long-term vision of becoming a key player in digital transformation solutions in the Indian BFSI landscape.

Key Strategic Benefits:

• Enhances product offerings across fintech and digital services.

• Strengthens customer base in the banking and insurance sectors.

• Opens new revenue streams through integration of FSPL’s proprietary frameworks and digital platforms.

• Positions Magellanic Cloud more competitively against other digital transformation players in India.

Finoux’s Core Offerings: Products, Frameworks, Services

Finoux Solutions is known for delivering end-to-end technology solutions under three major categories:

1. Products:

Custom-developed software that supports digital lending, customer onboarding, KYC management, fraud detection, and automated underwriting tailored for BFSI needs.

2. Frameworks:

Reusable platforms that accelerate fintech solution deployments, ensuring agility, scalability, and compliance.

3. Services:

Consulting and technology implementation for banks and insurance companies looking to digitally transform operations.

Why Finoux Was a Strategic Fit

There are several reasons Magellanic Cloud zeroed in on Finoux as an acquisition target:

• Strong Revenue & Profitability: Consistent year-on-year growth proved its market resilience.

• Niche Expertise in BFSI: Deep understanding of financial sector workflows and digital needs.

• Customizable Frameworks: IP-led model that fits seamlessly with Magellanic Cloud’s product stack.

• Market Demand Alignment: BFSI is currently undergoing a massive digital shift, and Finoux is well-positioned in this transformation wave.

Impact on BFSI Clients and Future Roadmap

Post-acquisition, Magellanic Cloud will be better equipped to deliver AI-enabled, cloud-based, secure financial platforms that address the rapidly evolving digital needs of BFSI clients in India.

Planned Integrations:

• Embedding Finoux's digital lending platform with Magellanic Cloud’s cloud and AI technologies

• Leveraging cross-client opportunities to scale both customer bases

• Creating bundled solutions to improve time-to-market for digital banking and insurance products

Conclusion: A Win-Win Acquisition

Magellanic Cloud’s acquisition of Finoux Solutions Private Limited marks a pivotal moment in its growth trajectory. This strategic move not only allows the company to gain access to high-demand fintech IP but also enables rapid scalability in India’s booming financial services sector.

The acquisition is not just about numbers, but about vision alignment and capability enhancement, aimed at making Magellanic Cloud a leader in the BFSI tech domain.

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