Veefin acquires Singapore-based AI startup Walnut

Veefin Solutions Ltd, a supply chain fintech startup that listed on the BSE’s SME platform last year, is acquiring a stake in a Singapore-based generative artificial intelligence (AI) startup Walnut in its fourth acquisition in the last five months.  

Mumbai-based Veefin, through its subsidiary Estorifi Solutions Pvt Ltd, will buy 50% stake in Walnut AI for about $2 million (nearly ₹17 crore) in a cash deal, it said in an exchange filing.  

Walnut AI’s estimated revenue in 2024 was $1.2 million (₹7.7 crore), flat from the preceding year, according to an exchange release.  

The acquisition helps Veefin access Walnut’s client roster that includes DBS, Bank of Singapore, Amret, and RCBC, besides generating additional revenue. 

“GenAI is a must-have capability for the group. Walnut thus fits in very well into the Veefin ecosystem. The acquisition of Walnut is part of our strategic endeavour to become the Global No. 1 Working Capital Finance Platform," said Raja Debnath, chairman and co-founder of the Veefin Group of Companies. 

Walnut, co-founded by Bala Iyer and Lalit Kumar in 2020, offers software solutions to banks and financial institutions. It relies on AI technology to manage complex and large-scale datasets for insights in areas such as credit, risk, KYC and capital market operations areas.  

It will continue to operate as an independent entity after the acquisition is complete.  

The latest deal is the first international acquisition for the Veefin group.  

In September, Gautam Udani, co-founder and chief operating officer of Veefin, told VCCircle the company was spending ₹400 crore in cash and stock for inorganic bets, as it aims to have a comprehensive suite of working capital finance solutions.  

In September, it acquired a digital lending platform EpikIndifi in a cash and stock deal worth about ₹125 crore ($14.9 million). In August, it said it was buying the Indian arm of Singapore technology firm Nityo Infotech. In June, it said it had bought a stake in Mumbai-based Regime Tax Solutions, integrating TaxGenie and PayInvoice solutions into its platform, which will include GST compliance and accounts automation.  

“We continue to grow the Veefin Group by bringing in more and more companies into the Veefin ecosystem to leverage the massive client base that the entire group now commands,” Debnath added.  

Veefin, incorporated in 2020, offers technology product solutions for supply chain finance and digital lending to banks, non-banking financial institutions, fintech companies, marketplaces, and corporate houses. These solutions include end-to-end lending stack, smart credit decisioning, business intelligence, and analytics.   

Veefin floated its IPO last year and listed on the SME platform in July, selling shares at ₹82 apiece. Its share touched a high of ₹753.90 in September.