JSA advised and assisted the promoters of the Sugal & Damani group (“Sugal & Damani”) on the sale of Payworld Digital Services Private Limited (“Payworld”) and its wholly owned subsidiary Smart Payment Solutions Private Limited to RNFI Services Limited (“RNFI”).
Payworld is a fintech company promoted by Sugal & Damani that offers a diverse portfolio of digital financial services, including a prepaid payment instrument wallet, Aadhaar Enabled Payment Services (AEPS), money transfers, utility-payments, air and railway ticket bookings and other retailer-assisted financial services.
RNFI is one of India’s fastest growing fintech companies that offers B2B and B2B2C solutions through its online portal and mobile applications such as Relipay. It is listed on the National Stock Exchange’s (NSE) EMERGE platform for small and medium-sized enterprises.
RNFI’s acquisition of 100% stake in Payworld from Sugal & Damani is subject to the receipt of requisite regulatory approvals, including from the Reserve Bank of India.
JSA assisted with the review, negotiation, finalization and execution of the transaction documents, completion of closing conditions, the closing of the transaction and completion of post-closing actions.
The transaction team consisted of Lead Partner, Upendra Nath Sharma, Partner, Nikhil P Joseph and Associate, Yash Wardhan Tiwari.
The direct tax team consisted of Partner and Head of Practice, Direct Tax Kumarmanglam Vijay, and Associate, Harshita Agrawal.
Partner and Head of Practice, Indirect Tax, Manish Mishra, Principal Associate, Shikha Parmar and Associate, Dhwani Vyas advised on indirect-tax related aspects of the transaction.
Kumarmanglam is an equity partner of the firm and also heads the direct tax and regulatory practice at JSA. He has more than 25 years of experience in matters relating to direct taxation (including international taxation, transfer pricing, litigation, anti-avoidance laws, and M&A tax), accounting, and corporate laws including mergers and acquisition, joint ventures, foreign investments, market entry strategy, and corporate restructuring.