Finablr Exploring Options After NMC Health Link Tanks Stock

Finablr, which owns a number of currency-exchange businesses, including Travelex, is weighing its options after its stock took a hit due to association with health operator NMC Health, according to a report by Bloomberg.

The company is considering a few moves, including bringing in new investors. Execs of Finablr will meet in the next few days to discuss the options on the table, the report said, citing unnamed sources. They could also potentially go after a take-private action. 

Shares in Finablr were down nearly 80 percent this year, and Founder Bavaguthu Raghuram Shetty and execs want to bring back confidence in the company.

On Thursday (March 5), shares were down as much as 31 percent. Abu Dhabi-based NMC is being blamed due to allegations of accounting and leadership issues from short seller Muddy Waters.

BRS Ventures, a holding company owned by Shetty, is looking with Houlihan Lokey at strategic pursuits moving forward, which could potentially involve debt restructuring or even asset sales. BRS Ventures owns stakes in almost 30 companies that include Finablr and NMC, and affiliated brands include UAE Exchange, Xpress Money and Remit2India.

Shetty offered a large amount of outstanding shares in Finablr and NMC as collateral for loans, and both companies said they don’t know who owns how many shares.

Finablr also recently announced that BayanPay, its Saudi-Arabia based network brand, has been given a license to provide payment services by the Saudi Arabian Monetary Authority (SAMA).

The service will offer digital wallets, SMB payment gateway solutions and eCommerce.

“Saudi Arabia is a fast-evolving market in the payments space with the right infrastructure readiness and a conducive regulatory framework,” said Promoth Manghat, group chief executive officer of Finablr. “Through BayanPay, Finablr will support the Kingdom’s strategic objectives of becoming a cashless society, one of the goals of the Financial Sector Development Program under Saudi Vision 2030. We look forward to supporting SAMA in pursuit of their vision to promote innovation in the financial sector as we work toward shaping the future of the digital payments landscape within the Kingdom.”