Scoop Confirmed! ICICI Bank exiting merchant acquiring JV
14 Dec 2024, 06:19 AMIn August, The Head and Tale was the first to report that ICICI Bank has terminated its exclusive merchant acquiring agreement with ICICI Merchant Services (IMSPL).
Arti Singh
Share the story on
ICICI Bank’s board of directors has approved a 19% stake sale in its associate company, ICICI Merchant Services Private Ltd.
In August, The Head and Tale was the first to report about this development. We told you that ICICI Bank has terminated its exclusive merchant acquiring agreement with ICICI Merchant Services (IMSPL) and Fiserv.
In the exchange filing, the bank said, “The Board of Directors of ICICI Bank Limited (“the Bank”), at its meeting held today, approved a proposal for sale of 19% stake held in ICICI Merchant Services Private Limited (“IMSPL” or “the Company”), an associate of the Bank, subject to receipt of requisite approvals. Consequent to the completion of this transaction, IMSPL will cease to be an associate of the Bank.”
The stake, which will be sold to First Data Holdings 1 (Netherlands) BV, is expected to generate funds worth Rs 160 crore to Rs 190 crore for the bank.
Upon completion of the transaction, IMSPL will no longer be classified as an associate entity of ICICI Bank, as per the exchange filing. The sale, which is contingent on receiving the necessary regulatory and statutory approvals, is expected to be executed before June 30, 2025.
In its exchange filing, ICICI Bank said IMSPL reported revenue from operations amounting to Rs 475 crore, with net worth standing at Rs 645 crore in the financial year ended March 31, 2024.
---------
The Head and Tale Exclusive:
In 2009, ICICI struck an alliance with First Data (which was acquired by financial technology giant Fiserv in 2019 and was rebranded Fiserv) for its growing merchant acquisition business. As part of the deal, ICICI Bank hived off its merchant acquiring business and formed a joint venture – ICICI Merchant Services – to build the bank's existing merchant acquiring portfolio. First Data bought 81% stake in the JV and the Indian bank held the remaining 19%. The deal valued the JV company at about $80 million (about Rs 368 crore). It was also exclusively agreed that First Data acquired and serviced the merchants and ICICI Bank acted as a settlement banker for the merchants.
The alliance stayed intact for almost 13 years but "it has been jolted beyond repair," The Head and Tale had reported in August.
“ICICI Bank, ICICI Merchant Services, Fiserv have separated. ICICI wants to build its own acquiring business now. The bank has sent the termination letter to Fiserv saying they don’t want to continue with the agreement," sources told us then.
Earlier every terminal was getting deployed under the name of ICICI Merchant Services. Now, the bank is deploying own terminals under ICICI Bank.
Read more exclusive details here.
The author is Founder and Editor of The Head and Tale. She can be reached at
[email protected]
Tweets @artijourno
Who Reads Us
“I enjoy reading The Head and Tale for their coverage on the Fintech landscape. The reporting is incisive and honest, and it demonstrates a sharp understanding of the industry and the issues that concern it. I'd like to extend my best wishes to Arti for her continued success.”
“Well-researched, informative and analysis based reporting makes an interesting read. 'The Head and Tale' news portal has been demonstrating this quite well covering fintech and emerging tech sectors. Their timely updates, exclusive stories and different perspectives on these sectors help me stay informed. Kudos to Arti Singh for pursuing her passion and best wishes to the team.”
“The Head and Tale stands out for its deep industry knowledge and impressive network of sources. I especially appreciate that the reporting remains independent, rarely resorting to paid puff pieces, making it a publication I can genuinely trust. Having followed Arti’s work for years, I’ve come to rely on The Head and Tale for its unparalleled insight and truly independent coverage. Arti’s long-standing presence in the sector means her reporting is always informed, with access few can match.”
“What I really appreciate about The Head and Tale is that it doesn’t just report the news, it interprets it. The stories are well-researched, comprehensive, and bold. Arti brings a fearless lens to reporting, often asking the uncomfortable but necessary questions. She makes you pause, reflect, and rethink what it all means for the payments and fintech ecosystem. It’s rare to find journalism that’s this sharp, timely, and relevant to the work we do every day.”
“I’ve always valued journalism that goes beyond surface-level headlines. The Head and Tale does exactly that - it connects the dots, asks the tough questions, and brings clarity to the shifts shaping our evolving industry. I’ve even encouraged my team members to subscribe, because staying informed through credible, deeply reported stories is as important as building products. For me, The Head and Tale has become part of essential reading.”
Related News
