Prime Securities acquires 42% strategic stake in Ark Neo Financial Services

Prime Securities, a premier investment banking and corporate advisory services provider, has acquired 41.68% stake in Ark Neo Financial Services Private, the Chennai-based fintech platform known as DhanLAP. Prime will infuse capital into the company by subscribing to optionally convertible debentures. On conversion Prime’s holding will move above 50%. Prime’s total investment will be to the tune of Rs 700 lakh.

This acquisition is part of Prime Securities' broader strategy to diversify and strengthen its portfolio. The company recently expanded into the wealth management sector through its wholly owned subsidiary, Prime Trigen Wealth.

DhanLAP is a digital platform for instantly availing loans against financial products including mutual funds, shares, and insurance, for retail investors. It was launched in October 2021 and was a pioneer in this segment. The platform has established partnerships with leading lending institutions and is poised to meet the increasing demand for finance in India.

C Chandrasekhar, Founder and CEO of Ark Neo Financial Services Private, has been a serial entrepreneur for the last 20+ years, building and managing companies in the US and India. His companies have been in the online financial services spectrum, offering products for retail customers.

Speaking about the platform, he said most retail investors are unaware that their investments in mutual funds and stocks can be used as collateral for securing loans. In times of financial need, many tend to redeem their mutual fund units, which disrupts their long-term financial goals and wealth-building plans.

“With DhanLAP, we have streamlined the entire process, making it quick and convenient by fully digitising the journey to access finance. This solution not only addresses their immediate financial needs but also ensures that their wealth continues to grow without interruption,” Chandrasekhar said. He added that they were “excited to have Prime Securities as our major shareholder, which will enable significant synergies between Ark Neo and Prime Securities, helping us scale and innovate further”.

 Akshay Gupta, Director at Prime Securities, said, DhanLAP, with its innovative approach to loans against securities, is perfectly aligned with Prime Securities’ strategic vision of expanding into scalable, technology-driven solutions in the financial services sector, driving long-term growth and value.

“These products are commonly offered by large private banking firms to their HNI clients. Given the significant increase in investor participation in financial markets in recent years, DhanLAP aims to make these offerings more accessible through an omnichannel presence,” Gupta said.

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