State Bank allows TPL and Abhi to acquire FINCA

KARACHI: The State Bank of Pakistan has granted final approval to TPL Corp Limited (TPL) and Abhi Limited to acquire up to 94.8 per cent of the shareholding in FINCA Microfinance Bank Limited, a bourse filing said on Tuesday.

“In continuation to our earlier announcements dated April 29, 2024 and September 20, 2024, the State Bank of Pakistan (SBP) has conveyed its final approval to TPL Corp Limited (TPL) and Abhi (Private) Limited (Abhi) for the acquisition of up to 94.8 per cent shareholding in FINCA Microfinance Bank Limited (Acquisition), subject to compliance with applicable laws, rules, regulations and terms and conditions of the SBP,” said a notification sent by TPL Corp to the Pakistan Stock Exchange.

“TPL and Abhi are in the process of completing all the requirements relating to the successful consummation of the acquisition,” it added.

The new stakeholder, TPL Corp operates in diverse industries including tracking, real estate, venture capital, and life and health insurance. Its partner ABHI is a fintech operator that also offers multiple financial services, including earned wage access, payroll solutions, and SME financing.

The strategic alliance between Abhi and TPL Corp aims to reshape financial inclusion efforts across Pakistan by combining FINCA’s extensive microfinance network and expertise with Abhi’s innovative digital solutions and TPL Corp’s presence in retail, insurance, and technology sectors, according to a statement.

Over the last decade, FINCA Pakistan has empowered millions of Pakistani families through lending, savings, and financial education. FINCA has consistently been recognised for customer experience excellence and has brought several innovations to the microfinance market, including the country’s first mobile network-agnostic digital wallet. With a presence in more than 100 cities throughout the country, the bank has made significant advancements in supporting women entrepreneurs.

The new entity will offer a broad range of innovative financial products. These solutions will provide individuals and small businesses with the financial tools they need to thrive, furthering Pakistan’s journey toward greater economic empowerment and inclusion.“At Abhi, we have always believed in creating accessible financial solutions for everyone,” said Omair Ansari, CEO and co-founder of Abhi.

The acquisition aligns with TPL’s vision of driving innovation in financial services. With TPL’s diverse business portfolio and FINCA Pakistan’s established presence and deep knowledge of the market, the combined entity is well-positioned to introduce customer-focused solutions that can make a tangible difference in underserved regions.

FINCA customers will experience a seamless transition, with enhanced access to a more comprehensive suite of financial services in the near future. The acquisition will allow customers to benefit from Abhi’s digital-first platform, aimed at making banking services more accessible.

“FINCA Pakistan delivered on its promise to develop a nationwide microfinance network that is creating economic opportunity throughout Pakistan, especially for women,” said Jeff Smith, chair of the FINCA Pakistan Board of Directors. “Abhi and TPL share FINCA’s commitment to expanding access to financial services for small entrepreneurs. The infusion of new capital and more comprehensive digital services have the potential to significantly accelerate financial inclusion in Pakistan.”

Looking ahead, Abhi, TPL and FINCA plan to focus on delivering a new range of financial products tailored to underserved communities, driving financial inclusion and contributing to the nation’s economic growth. Further updates on new offerings and services will be shared in the coming months.