Prime Securities Acquires Majority Stake in Fintech Platform DhanLAP The investment involves subscribing to optionally convertible debentures, with plans to raise its stake above 50% upon conversion. Prime Securities' total investment is valued at INR 7 crore.
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Prime Securities, a leading investment banking and corporate advisory firm, has acquired a 41.68% stake in Chennai-based fintech platform Ark Neo Financial Services Private, popularly known as DhanLAP.
The investment involves subscribing to optionally convertible debentures, with plans to raise its stake above 50% upon conversion. Prime Securities' total investment is valued at INR 7 crore.
This acquisition aligns with Prime Securities' broader strategy to diversify its offerings, following its recent expansion into wealth management through its wholly owned subsidiary, Prime Trigen Wealth. The move underscores Prime's commitment to scaling its footprint in technology-driven financial services.
Launched in October 2021, DhanLAP has pioneered a digital solution for availing loans against financial assets like mutual funds, shares, and insurance policies. The platform, which has partnered with leading lending institutions, caters to retail investors, addressing a critical need for instant liquidity without disrupting long-term financial goals.
C Chandrasekhar, Founder and CEO of Ark Neo Financial Services, said, "Many retail investors are unaware that their investments in mutual funds and stocks can serve as collateral for loans. Instead of redeeming their assets during financial needs, DhanLAP offers a seamless, fully digitised solution to secure loans, ensuring uninterrupted wealth growth," he explained.
Chandrasekhar also added, "Prime Securities as our major shareholder will create significant synergies, enabling us to scale and innovate further."
Akshay Gupta, Director at Prime Securities, highlighted the strategic alignment of DhanLAP with Prime's vision. "DhanLAP's innovative approach to loans against securities fits perfectly with our objective of delivering scalable, technology-driven financial solutions. By democratising access to these products, traditionally offered by private banking firms to HNIs, DhanLAP is poised to capture the growing demand among retail investors."
With this acquisition, Prime Securities aims to unlock the platform's growth potential, leveraging its expertise and resources to drive DhanLAP's expansion and innovation in the financial services sector.
