McLaren Technology Acquisition Corp looks to acquire an Indian fintech firm

US-based McLaren Technology Acquisition Corp is looking to acquire a significant stake in an Indian fintech firm preferably having valuation in the range of $500 million-$2 billion. McLaren Technology Acquisition Corp (MTAC) chairman and CEO Saja Pillai said that he believes firmly in a fintech movement globally as most of the unicorns created around the world have been in the fintech and artificial intelligence categories in the last five years.

“If you look at the market value that has been created in the fintech space in the last 2-3 years, it is close to $5 trillion. By far, fintech is the largest category in the digital category to invest. We are looking for a fintech company which has a minimum asset valuation in the range of $500 million-$2 billion,” he said.

Pillai also mentioned that this company will get the opportunity to trade at Nasdaq from Day1 and this company is a retail fintech at the front end where loans, leasing, buy now pay later happens. “Next is wealth fintech, which is a significant on its own. Then you have mid core fintech, major core fintech, institution fintech and banking tech. We are looking at fintech that plays in all these fintech ladders,” he noted.

Pillai further noted that supply side of fintech which includes KYC, payments and banking are equally valuable as a service category. The MTAC aims to combine fintech assets on the fintech ladder and on the supply side as well, he underscored.

MTAC is the second Indian promoted special purpose acquisition arm to list on the Nasdaq. McLaren Tech raised $201.25 million during its Nasdaq listing early this month for effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganisation, or similar business combination with one or more businesses.

MTAC chief financial officer Rajeev Nair stated the company will evaluate fintech firms and decide on the scale of investments that it plans to make. “Our sweet spot would be $1-1.5 billion and the upper side is $2 billion or more. This doesn’t stop us going to a $5 billion valuation company but it is unlikely that we will get that kind of valuation from India. We have $201 million sitting in the bank. We can use that once we identify a target. We will raise funds further if we require more,” he stated.

“The company is a blank check company formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganisation or similar business combination with one or more businesses. While the company may pursue an initial business combination target in any business, industry or geographic location, it intends to focus its search on companies within the banking, financial services and insurance sector that leverage artificial intelligence, machine learning, digital, technology, and fintech,” Nasdaq release reads.

(With agency inputs)

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