Nium has brokered a deal to acquire Wirecard Forex India, the India forex unit of insolvent firm Wirecard, for an undisclosed amount.
July 8, 2021, | AtoZ Markets – Singapore-based payments platform Nium has signed an agreement to acquire Wirecard Forex India for an undisclosed amount. Wirecard Forex India, part of Germany-based Wirecard AG, is a licensed authorized dealer under the Reserve Bank of India’s regulations and a remittances service provider in the country.
The deal, which also covers Wirecard’s authorized dealership (AD2) license, will enable Nium to carry out a range of payment services activities across India. These include currency conversion, money transfer, and pre-paid card issuance.
Nium acquires Wirecard Forex India to broaden its licensing portfolio
Nium co-founder and CEO Prajit Nanu said that the takeover would broaden its licensing portfolio. He further noted that the addition of Wirecard Forex India will extend the suite of digital payments services the company can offer in India, while providing a physical footprint for it to offer more support in metro areas.
The acquisition comes at a time when the country’s prepaid card market is expected to grow at a compound annual growth rate of 40.5% between 2021 and 2026.
In addition, as the economy prepares for a recovery from the Covid-19 pandemic, gift cards, meal cards, travel cards, and payday cards are expected to become increasingly popular amongst consumers and businesses.
Pratik Gandhi, the chief operating officer of Nium said:
“Wirecard Forex has extensive reach throughout India and will enable us to deliver next-generation payment services across all major metropolitan cities.”
Furthermore, as a result of the acquisition, all 190 of its employees will join Nium.
Nium issues around 30 million physical and virtual cards. It is licensed in 11 jurisdictions, including direct card issuing capabilities across 24 countries and in 40 currencies.
As a reminder, Wirecard AG became embroiled in one of the largest financial scams in modern history after the company in June last year said €1.9 billion in cash was missing from its books.
Its former chief executive, chief operating officer, two board members, as well as other senior executives have been arrested and implicated in criminal proceedings since.
Since August 2020, Wirecard has sold some of its subsidiaries in UK, United States, Brazil, and the Philippines. It’s India forex unit has 23 branch locations in India, including Mumbai, New Delhi, Chennai, Gurgaon, Pune, Hyderabad, Kolkata, and Bengaluru.
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