個案資料

In June 2012, the Reserve Bank of India (RBI) sought to further financial inclusion in India by permitting non-bank corporate bodies to roll out “white-label” automated teller machine (WLA) networks. Unfortunately, most licensed operators soon found that the number of customers using the white-label machines was lower than anticipated, while the costs of installation, operation, and maintenance were higher than projected, and the revenues received from card-issuing agencies (i.e., banks) were inadequate to ensure viability of the business proposition. However, one operator, Tata Communications Payment Solutions Limited (TCPSL), rolled out its “Indicash” network very quickly, installing over 7,000 units in about 33 months, accounting for close to 60 per cent of all WLA installations by March 2016. Yet by June 2016, in what seemed like a reversal, TCPSL was put up for sale at an estimated valuation of between INR10–13.5 billion. In attracting potential buyers of the Indicash network, how could TCPSL leverage its accomplishments with the WLAs to make a sale? What would attract a strategic buyer to the WLAs?

This case is ideal for finance and banking courses delivered at the graduate level. After completion of the case, students will be able to<br><ul><li>collect relevant data available in the public domain to respond to a business problem with as much evidence and certainty as possible.</li><li>analyze a real-world situation, and arrive at investment decisions based on valid assumptions.</li><li>Isolate key variables that could adversely affect an entire business proposition and discuss appropriate risk mitigation measures.</li><li>appreciate that relatively minor policy measures may have a significant impact on a business, and that different players in the same policy environment might choose to proceed with vastly different courses of action.</li><li>Make a projection for this business, and give the WLA operators as many choices as possible.</li></ul>

• Retail banking, complementary services, pricing, project optimization