Why fund managers lost conviction in Findi's Indian IPO story

Findi's ATM and payments rollout across India promised a lucrative local IPO, but repeated earnings misses and a public executive dispute have eroded fund manager confidence.

31 Jan 2026 · 5 min read

Indian ATM and payments holding company Findi saw its share price nearly halve in a single month in October 2025 after reporting its third consecutive earnings disappointment, according to DMX Asset Management's October 2025 Monthly Report, which described a weak FY26 forecast that brought doubt about the company's ability to execute an anticipated local market IPO of its Indian subsidiary in 2026 at its indicated valuation range.

A promising Indian rollout undermined by execution and governance issues

DMX Asset Management's July 2025 Monthly Report had earlier detailed the growth opportunity behind the original thesis: a successful pilot of BC Max banking centres co-branded with the Central Bank of India, integrating FindiPay merchant services with CBI banking products and staffed by CBI personnel, with a national rollout of 76 centres beginning and ambitions to reach 500 locations over two years. DMX's September 2025 report flagged a complicating factor beyond execution: a very public war of words had erupted between a former executive and the company, adding to pressure on the shares alongside a March capital raise and a delayed FY26 forecast.

We had substantially reduced our FND position at higher levels, and further selling post the guidance has resulted in our exposure here at now well under 1%. With >$100m in revenue, the opportunity remains for FND to deliver EBITDA margins north of 30%, which would position FND for a successful IPO in India, but our conviction here, on the back of FND's recent disappointing updates, has diminished.

— DMX Asset Management, Monthly Report, October 2025

Paradice Investment Management's September 2025 Quarterly Report captured the market's growing frustration with a lack of disclosure: despite management reaffirming confidence in sustained momentum into 2026, there was an expectation of more newsflow around integration and contribution from recent acquisitions and progress toward the Indian IPO, and the absence of updates disappointed investors even before the earnings disappointments began.

What managers are watching next

DMX Asset Management's January 2026 Monthly Report confirmed it had sold its remaining sub-1% position, noting Findi had been a highly profitable investment overall but was disappointing not to see through to its planned Indian IPO, with a stretched balance sheet requiring a substantial and highly dilutive recapitalisation, alongside weak recent cash flows and earnings, ultimately eroding conviction relative to other opportunities. With comparable company valuations in the Indian market having also de-rated significantly, the prospects for Findi's local market listing at anything close to its originally indicated valuation range now look considerably more uncertain.