Radiant Cash Management ventures into fintech with Acemoney acquisition

Radiant Cash Management Services (RCMS) has made a move into the fintech sector by acquiring a 57% stake in Acemoney, a company that offers an integrated platform for both cash and digital banking. This strategic acquisition, an all-cash deal, marks a significant step toward expanding digital banking solutions, particularly for the large rural population newly integrated into the formal banking system.

In an interview with CNBC-TV18, David Devasahayam, the Chairman and Managing Director (CMD) of the ₹1,067 crore market capitalisation company said it is set to introduce two key products, micro-ATMs, and QR codes, into tier 3 and tier 4 locations.

“We are focusing on deploying over one lakh micro-ATM in the next two years with RBI subsidy and per micro-ATM the revenue potential is about Rs 850 per month. So, we are looking at close to ₹8.5-9 crore of additional revenue per month and this is what we are targeting for the next two years,” he said.

| Dhanteras 2023: How to avail cashback up to ₹3,000 on buying digital gold via PhonePe?

Acemoney, which the company recently acquired is not currently profitable and will affect the EBITDA (earnings before interest, tax, depreciation and amortisation) margin in the short term. Devasahayam, however, is optimistic about its prospects and believes "the company is on track to reach breakeven by the end of the current year."

Currently, Radiant Cash Management has a presence in 14,000 pin codes, primarily in tier 2 and tier 3 locations.

Also Read | Deal action picking up in Fintech & SaaS spaces: Raja Lahiri, Grant Thornton Bharat

Radiant Cash, founded in 2005, is based in Chennai, India, and operates in five primary domains, which encompass cash collection and delivery, network currency management, cash processing, armoured cash transportation, and a range of additional value-enhancing services.

For more details, watch the accompanying video