KFin debuts new solution for alternative investment funds in India

KFin Technologies, a technology-driven financial services platform, on Tuesday, introduced XAlt, an integrated fund administration platform designed specifically for Alternative Investment Funds (AIFs) in India. 

Alternative investments refer to investment options that are not traditional, such as stocks, bonds, and cash. They can include a wide range of assets, such as real estate, commodities, private equity, hedge funds, art, collectibles, or cryptocurrencies. 

Over the past decade, AIF commitments in India have seen a significant increase, from ₹1,437 crore in 2013 to ₹8,33,774 crore in March 2023, representing a phenomenal 580x growth. This surge in AIFs is expected to continue growing at a compound annual growth rate (CAGR) of 26%, driven by the substantial growth of high-net-worth individuals (HNIs), ultra-HNIs, and foreign investors seeking diverse investment products in domestic markets. 

XAlt aims to simplify and streamline fund administration, catering to the needs of investors, fund managers, distributors, and regulators in this growing market. The platform offers solutions that enhance operational efficiency, including persona-based portals for different users, digital onboarding for investors and distributors, system integration, innovative commission processing, regular AML/KYC checks, and robust security measures. 

The software-as-a-services (SaaS)-based company claims that the platform is expected to have a significant impact on fund management and the growth of the AIF sector in India. According to its website, KFin Technologies serves the needs of asset managers with clients spanning mutual funds, AIFs (alternative investments), pension, wealth managers and corporates in India and abroad. 

Sreekanth Nadella, MD & CEO at KFintech, “With the introduction of XAlt, KFintech aims to set new standards in the AIF fund administration space, offering a fully automated system that aligns with the industry's evolving requirements.” 

According to him, the new solution simplifies complex processes for fund managers and investors, encouraging more efficient and secure fund administration. Its integrated approach is expected to attract more investments into the AIF sector due to its user-friendly and secure environment for fund administration. 

The company recorded profit after tax (PAT) of ₹195 crore in FY 2023. It witnessed PAT of ₹149 crore in FY 2022 indicating a growth of 27% in terms of PAT over the last one year. Overall, the company saw its revenue growing by 12.5% to reach ₹720 crore last financial year.