Acquires 41.68% stake in Ark Neo Financial Services, to invest Rs 7 cr
MUMBAI, Dec 17 (The CONNECT) – Prime Securities Limited a premier investment banking and corporate advisory services provider, has acquired 41.68% stake in Ark Neo Financial Services Private Limited, the Chennai-based fintech platform known as DhanLAP.
Prime will infuse capital into Ark Neo by subscribing to optionally convertible debentures. On conversion Prime’s holding will move above 50%. Prime’s total investment will be to the tune of INR 700 lakhs.
This acquisition is part of Prime Securities’ broader strategy to diversify and strengthen its portfolio. Recently, the company expanded into the wealth management sector through its wholly owned subsidiary, Prime Trigen Wealth Ltd. (PTWL).
Launched in October 2021, DhanLAP is a digital platform for instantly availing loans against financial products including mutual funds, shares, and insurance, for retail investors.
The pioneering platform has established partnerships with leading lending institutions and is poised to meet the increasing demand for finance in India.
C R Chandrasekhar, Founder & CEO of Ark Neo Financial Services Private Limited, said, most retail investors are unaware that their investments in mutual funds and stocks can be used as collateral for securing loans.
In times of financial need, many tend to redeem their mutual fund units, which disrupts their long-term financial goals and wealth-building plans. With DhanLAP, he said, “we have streamlined the entire process, making it quick and convenient by fully digitizing the journey to access finance”.
Akshay Gupta, Director at Prime Securities, said, DhanLAP, with its innovative approach to loans against securities, is perfectly aligned with Prime Securities’ strategic vision of expanding into scalable, technology-driven solutions in the financial services sector, driving long-term growth and value.
These products are commonly offered by large private banking firms to their HNI clients. Given the significant increase in investor participation in financial markets in recent years, DhanLAP aims to make these offerings more accessible through an omnichannel presence, he said.
