In a major strategic move, Veefin Solutions, a listed fintech startup, has made its first overseas acquisition by purchasing a 50% stake in Walnut, a Singapore-based GenAI startup. This all-cash deal marks a significant milestone for Veefin as it expands its global footprint, adding cutting-edge artificial intelligence (AI) capabilities to enhance its offerings for corporate and banking clients.
Although the exact financial terms of the deal were not disclosed, this acquisition is set to strengthen Veefin’s position in the rapidly growing AI and data transformation space. With Walnut’s advanced GenAI technology, Veefin will be able to help clients, particularly in banking and finance, transform vast amounts of unstructured data into actionable insights—faster and more accurately than ever before.
Despite the acquisition, Walnut will continue to operate independently, preserving its own brand identity while integrating its AI solutions into the broader Veefin ecosystem.
Founded in 2020 by Bala Iyer and Lalit Kumar, Walnut is an AI-driven startup that focuses on solving complex data problems for banks and financial institutions. The company uses AI, machine learning (ML), and natural language processing (NLP) to create solutions in areas such as credit risk, KYC (Know Your Customer) compliance, and capital markets.
One of Walnut’s flagship products is Vegaspread, a tool that extracts critical insights from complex financial documents, such as annual reports, within minutes. This product has already gained traction with major financial institutions like DBS and Bank of Singapore, and now, as part of Veefin, it will be rolled out to over 500 clients in the banking, financial, and corporate sectors.
The acquisition of Walnut is part of Veefin’s broader strategy to build a more integrated ecosystem of fintech companies. According to Raja Debnath, Chairman and Co-founder of Veefin Group, the addition of GenAI capabilities is a key step in the company’s ongoing growth. “We continue to expand by bringing more companies into the Veefin ecosystem,” Debnath said. “With the acquisition of Walnut, we can now leverage its GenAI tools to transform how our clients handle and analyze data, particularly in financial decision-making.”
This acquisition fits perfectly into Veefin’s existing offerings, which include supply chain finance, lending solutions, and smart credit decisioning. The company provides a wide range of financial services, including business intelligence, digital identity verification, automated financial statement analysis, and more.
The acquisition of Walnut aligns with Veefin’s ambition to become a leader in the fintech space, particularly in AI-driven financial solutions. Bala Iyer, Co-founder and CEO of Walnut, expressed enthusiasm about the partnership. “As we set our sights on global expansion, including in India, our goal is to become the go-to GenAI tool for fast and intelligent credit decisioning. With Veefin’s massive client base and shared vision, we couldn’t have found a better partner for this journey.”
With the addition of Walnut’s tools, Veefin will enhance its ability to provide data-driven financial services that help clients make smarter, faster decisions—whether in credit risk management, compliance, or capital markets.
This acquisition is just the latest in a series of strategic investments by Veefin as it builds out its diverse portfolio. Last month, Veefin acquired a 26% stake in EpikInDiFi, a company focused on financial technology solutions, in a share swap deal that valued the company at INR 125 Crore. This acquisition further solidified Veefin’s position in the financial technology space.
Earlier this year, Veefin made two other notable acquisitions: a 26% stake in Regime Tax Solutions, a company specializing in GST compliance and accounts automation, and the Indian arm of Nityo Infotech, a global IT services provider. These moves signal Veefin’s intention to diversify and strengthen its technology stack across multiple verticals in the financial services sector.
Despite the challenges in the global financial landscape, Veefin Solutions has been performing well financially. The fintech company reported a profit of INR 4.13 crore for the second quarter of the fiscal year 2024-25, which is an impressive 325% growth compared to the previous year’s profit of INR 97.98 lakh.
However, the company’s profit declined by 82% on a sequential basis from the previous quarter (Q1 FY25), where it posted a profit of INR 6.41 crore. On a positive note, Veefin’s operating revenue saw a 112% rise year-on-year to INR 19.08 crore, compared to INR 9.05 crore in Q2 FY24. On a quarter-on-quarter basis, the revenue increased by 21%, from INR 15.91 crore in Q1 FY25.
Veefin was listed on the BSE SME on July 5, 2023, at INR 82 per share. Since the listing, its stock has surged nearly 7X, closing today’s trading at INR 567.75, marking a 4.62% increase.
With its recent acquisitions and an ambitious strategy for growth, Veefin Solutions is positioning itself to become a dominant force in the fintech industry, particularly in the AI-powered financial services sector. The company aims to continue expanding its portfolio and client base while leveraging advanced technologies like GenAI to create more efficient, data-driven solutions for its customers.
As Veefin works to integrate Walnut’s AI capabilities, it will likely see an uptick in demand from clients in the banking, financial, and corporate sectors, all of whom are increasingly seeking ways to make smarter, faster decisions with data.
By acquiring a 50% stake in Walnut, Veefin Solutions has made a bold move to strengthen its offerings in the rapidly growing AI and fintech space. As the company expands its portfolio and strengthens its position in the market, it’s clear that Veefin is well on its way to becoming a major player in the global fintech and AI industry.
With Walnut’s GenAI solutions now in its arsenal, Veefin is ready to transform the way its clients handle data and make business decisions in a world increasingly driven by artificial intelligence.
