Aurionpro Solutions shares hit upper circuit after firm announces acquisition of Arya.ai

Aurionpro Solutions on Friday announced it has acquired Mumbai-based banking and insurance focused startup, Arya.ai, which it believes will significantly enhance its portfolio of enterprise fintech offerings to expedite the adoption of artificial intelligence (AI). Shares of Aurionpro Solutions were trading 5% higher.

Aurionpro Solutions said it will acquire a majority stake of 67% in Arya.ai. The company believes the acquisition will bring products and expertise in AI, deep learning, intelligent automation, platform as a service (PaaS), autonomous AI platforms and tailored industry solutions to complement and strengthen its existing portfolio.

The transaction, which will be an all-cash deal, comprises acquisition of shares held by the existing shareholders and subscription of new equity capital in the company. The aggregate investment including secondary acquisition and fund infusion stands at approximately $16.5 million.

Ashish Rai, CEO of Aurionpro Solutions said the acquisition of Arya.ai brings together Aurionpro’s portfolio with one of the most mature enterprise AI platforms focused on the needs of banks and insurers.

Vinay Kumar, CEO and founder of Arya.ai believes making AI acceptable and scalable in the financial industry is extremely different and hard. “We have been growing 3x year-over-year (y-o-y) in the last couple of years and have been profitable,” he said.

During the third quarter of fiscal year 2024, Aurionpro had reported a 37% y-o-y rise in its revenue at ₹231 crore. Earnings before interest, tax, depreciation and amortisation (EBITDA) increased 38% to ₹51 crore during the quarter. The company’s net profit jumped 45% to ₹38 crore.

Ashish Rai, Vice-Chairman and CEO of Aurionpro had said that the third quarter saw a significant uptick in deal activity, marked by the acquisition of substantial orders across key segments. “The ongoing strong demand environment across our major offerings reinforces our confidence in sustaining this growth trajectory and our immediate focus will be on continuing to scale our execution capabilities to capitalise on this demand,” he had said.

Shares of the company have gained over 9.5% since the beginning of the year. The stock has risen over 615% in the last one year.