Bharti Airtel will sell 19.9 percent stake in Airtel M Commerce Services (AMSL) to Kotak Mahindra Bank (Kotak).
Airtel M Commerce Services (AMSL) is also converting its existing Prepaid Payment Instrument license into a Payments Bank license to be issued by the Reserve Bank of India (RBI).
AMSL, which offers mobile money services under the brand name Airtel Money, is a wholly-owned subsidiary of Indian telecom service provider Bharti Airtel.
“Kotak’s banking expertise coupled with Airtel’s strength in telecom will deliver financial services to millions of unbanked citizens across the country,” said Gopal Vittal, MD and CEO (India and South Asia), Bharti Airtel.
Airtel has more than 215 million subscribers in India with 31 percent revenue market share. Airtel said its distribution network reaches over 1.4 million retail points across India.