What happened – CAMS is acquiring a majority stake in Fintuple, a fintech company providing platform and API solutions for alternative investment funds, portfolio managers, custodians, and distributors.
The deal is expected to be completed by March 31.
Context – CAMS is a technology solutions provider to the mutual fund industry, that basically allows all fund issuers to keep records, send you statements, and more. Meanwhile, Fintuple is a new-age start-up founded in 2018 that provides niche technology offerings in the areas of client digital on-boarding, KYC, fund data, fact sheets, and analysis, among others, for AIF and PMS.
What does this mean – the purchase allow CAMS to fill critical gaps in its portfolio of solutions and bring those products faster to its client base.
Bottomline – legacy financial services players continue to make selective acquisitions from the startup world on a need-basis, without getting too excited about the froth – a trend that's likely to hold for the future.
