TPL Corp And Abhi Secure SBP Approval For FINCA Microfinance Acquisition

In a significant development for the microfinance sector in Pakistan, TPL Corp Limited and Abhi (Private) Limited have received the green light from the State Bank of Pakistan (SBP) to acquire a substantial 94.8% stake in FINCA Microfinance Bank Limited. This approval marks a pivotal moment for both companies as they aim to enhance their footprint in the financial services landscape.

On Tuesday, TPL Corp announced this important news through a notification to the Pakistan Stock Exchange (PSX). The approval follows earlier communications from TPL on April 29 and September 20, 2024, where they expressed their intentions to expand their operations within the microfinance sector. The notice from TPL Corp stated, “In continuation to our earlier announcements dated April 29, 2024, and September 20, 2024, the State Bank of Pakistan (“SBP”) has conveyed its final approval to TPL Corp Limited (“TPL”) and Abhi (Private) Limited (“Abhi”) for the acquisition of up to 94.8% shareholding in FINCA Microfinance Bank Limited (“Acquisition”), subject to compliance with applicable laws, rules, regulations, and terms and conditions of the SBP.”

This acquisition is not just a business move; it represents a strategic alignment with TPL and Abhi’s vision to broaden their financial services portfolio. By acquiring a significant stake in FINCA Microfinance Bank, both companies are poised to leverage their combined expertise to offer innovative financial solutions to a wider audience.

As part of this process, TPL and Abhi are diligently working to meet all regulatory requirements set forth by the SBP to finalize the transaction. This collaboration is particularly noteworthy as Abhi is recognized for its lending fintech platform, which is well-known for its earned wage access (EWA) product. The partnership with TPL Corporation to acquire FINCA Microfinance Bank underscores a commitment to enhancing financial accessibility for individuals and businesses alike.

The approval from the SBP for TPL Corp and Abhi to acquire a majority stake in FINCA Microfinance Bank is a promising development for the microfinance sector in Pakistan. It not only reflects the growing interest in financial technology but also highlights the potential for increased financial inclusion in the country. As these companies move forward with the acquisition, it will be interesting to see how they innovate and expand their services to meet the evolving needs of their customers.