Publicly-listed multi-asset fintech group Plus500 (LSE: PLUS) announced today (Monday) that it has conditionally agreed to acquire Indian financial services company Mehta Equities Limited for approximately $20 million, marking its entry into one of the world's largest retail trading markets.

Plus500 to Acquire Indian Broker Mehta Equities in a $20M Deal

The acquisition gives Plus500 immediate access to India's futures market, where over 150 billion contracts were traded in 2024, representing more than 75% of global transaction volume.

“We are thrilled to announce this acquisition in India, which marks a significant milestone in our global expansion strategy,” said David Zruia, CEO of Plus500. “By combining Plus500's cutting-edge technology with Mehta's local presence and expertise, we aim to accelerate growth and unlock new opportunities in this dynamic and fast-growing market.”

Founded in 1995, Mehta Equities provides brokerage services for futures, options, and cash equities, portfolio management, investment banking, and custodian services. The firm holds memberships with major Indian exchanges, including the National Stock Exchange, Bombay Stock Exchange, and Multi Commodity Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term.

The deal will be funded from Plus500's existing cash reserves of approximately $890 million as of December 31, 2024. Completion is subject to regulatory approvals and other closing conditions.

Mehta's founder and chairman, Rakesh Mehta, will remain with the business following completion. “We are proud and excited to be joining a well-renowned and established global fintech group such as Plus500,” Mehta said. “We look forward to a successful future together as we work collectively to grow the businesses and take them to the next level.”

Futures Move

The acquisition is expected to boost Plus500's presence in the global futures market by offering execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Read this Term and clearing services to both institutional and retail customers. Additionally, it will expand the company's product portfolio to include various Indian financial products such as cash equities, options, wealth management, and other local financial services.

For Plus500, which already operates in the US futures market, the move into India creates potential synergies between the two markets and furthers the company's plan of becoming a leading global multi-asset fintech group.

Plus500 made its US market entry through the acquisition of two related entities: Cunningham Commodities and Cunningham Trading Systems. The Israeli-founded fintech firm completed this transaction at a price tag of $30 million, funding the purchase from its substantial cash reserves.

The timing of Plus500's American market expansion came after another significant industry move—IG Group's purchase of tastytrade in a much larger deal valued at $1 billion. These strategic acquisitions enabled both London Stock Exchange-listed trading platforms to extend futures trading services to American clients, though tastytrade offers a considerably wider product range that encompasses stocks, options, and digital assets.

Plus500 Reports Solid 2024 Results

In the meantime, the company has released its financial results for 2024, showing continued growth as the company pursues its international expansion strategy. The firm reported revenue of $768.3 million, representing a 6% increase from the previous year, while EBITDA reached $342.3 million with a 45% margin.

The company's customer base saw significant expansion, with new customer numbers rising to 118,010, a 30% increase from 2023. Active customers totaled 254,138, up 9% year-over-year. Customer deposits for the period amounted to $3.0 billion, with the average deposit per active customer at approximately $12,000.

Earnings per share for 2024 stood at $3.57, a 13% increase from the previous year. The company noted that its revenue and EBITDA had exceeded “market expectations,” as previously indicated in its January trading update.