Plus500, a leading multi-asset fintech group, has announced its acquisition of Indian financial services firm Mehta Equities for $20 million. This move signals Plus500’s strategic expansion into one of the world’s largest retail trading markets.
Plus500 to Acquire Mehta Equities for $20 Million
The acquisition will provide Plus500 with direct access to India’s burgeoning futures market, which saw over 150 billion contracts traded in 2024, accounting for more than 75% of global transaction volume. The deal, valued at approximately $20 million, will be financed using Plus500’s existing cash reserves, which stood at $890 million as of December 31, 2024.
David Zruia, CEO of Plus500, expressed enthusiasm about the acquisition, emphasizing its role in the company’s global growth strategy. “By combining Plus500’s advanced technology with Mehta’s strong local presence and expertise, we aim to accelerate growth and unlock new opportunities in this dynamic and rapidly expanding market,” Zruia said.
Mehta Equities: A Key Player in India’s Financial Services
Founded in 1995, Mehta Equities offers a wide range of services, including futures and options brokerage, portfolio management, investment banking, and custodian services. The company is a member of major Indian exchanges such as the National Stock Exchange, Bombay Stock Exchange, and Multi Commodity Exchange.
Rakesh Mehta, founder and chairman of Mehta Equities, will remain with the business post-acquisition. He commented, “We are proud to join Plus500, a renowned global fintech group. We look forward to working together to elevate both our businesses and achieve new heights.”
Expansion into Global Futures Market
This acquisition will enhance Plus500’s footprint in the global futures market, enabling the company to offer execution and clearing services to both institutional and retail customers. Additionally, it will broaden Plus500’s product offerings to include Indian financial products like cash equities, options, and wealth management services.
With an established presence in the US futures market, this move into India presents new synergies between the two markets. Plus500’s expansion aligns with its goal of becoming a leading global multi-asset fintech group.
Previous Strategic Acquisitions
Plus500’s entry into the US market was marked by the acquisition of Cunningham Commodities and Cunningham Trading Systems for $30 million. These strategic moves, along with acquisitions like IG Group’s $1 billion purchase of tastytrade, are part of Plus500’s broader plan to extend its futures trading services globally.
Plus500’s Strong 2024 Financial Performance
For the 2024 fiscal year, Plus500 reported robust financial results. The company’s revenue increased by 6% to $768.3 million, while EBITDA reached $342.3 million, yielding a 45% margin. Plus500 also saw significant growth in its customer base, with new customers rising by 30% year-over-year, bringing total active customers to 254,138.
The company’s customer deposits for 2024 amounted to $3.0 billion, with the average deposit per active customer at around $12,000. Earnings per share for the year were $3.57, marking a 13% increase from the previous year. These results exceeded market expectations, further solidifying Plus500’s strong market position.
Through this acquisition, Plus500 is poised to strengthen its presence in the global futures market while tapping into India’s rapidly expanding financial services sector.
Related topics:
