BLS E-Services investigates acquisition targets

BLS E-Services had recently raised Rs 3,000 crore through its IPO and has begun scouting for a buyer.

“We are currently evaluating businesses where there are synergies that can be EPS accretive across our overall growth strategy,” Shikhar Agarwal, chairman of BLS E-Services, said in an emailed statement.

He added that the Rs 3,000 crore will be earmarked for acquisition of complementary businesses to enhance existing capabilities, revenue streams and market presence, upgradation of digital store infrastructure to strengthen the assisted e-services division, strengthening the company's technology infrastructure and consolidation of existing platforms.

The company plans to focus on both organic and inorganic growth strategies in FY25.

“We will leverage our existing market positions to expand each of our three key business segments: business correspondent services, supportive electronic services and e-government services,” he said.

“A key part of this growth strategy is improving cross-selling opportunities by offering integrated products and services through our extensive network of BLS touchpoints and BLS stores,” he added.

“The goal is to become a 'go-to-market platform' for various business sectors, including fintech and digital platforms,” ​​he further said.

The company operates through three main business segments: business correspondent services, support electronic services and e-government services.

Recently, the company's subsidiary StarFin has received registration as a Corporate Agent from the Insurance Regulatory and Development Authority of India (IRDAI), signalling the company's foray into insurance services as a new line of business.

It has also expanded its Business Correspondent (BC) operations to add new avenues such as Business Facilitator (BF) services to private banks, Doorstep Banking (DSB) services with public banks and Business Associate (BA) services for farmers' procurement and agricultural SME loan applications.

Currently, it has a network of over 100,000 touch points across India, including BC Centres, Government to Citizen Services (G2C) and Assist E-Service Points.