Beyond TCS & Infosys: 2 hidden smallcap tech gems powering India’s BFSI revolution

From integrating chatbots to handle customer queries to employing AI and ML to study suspicious patterns and detect fraud, the BFSI sector has evolved significantly. In 2022, AI adoption in the BFSI sector reached $680 million 2022 and is projected to surge sixfold to $3,935.5 million by 2028.

The growth is driven by customer-centric innovation, fraud detection, and operational efficiency. At the forefront, companies like Tata Consultancy Services (TCS) with cognitive automation and conversational AI, Infosys with Nia and Finnacle, and Wipro with end-to-end credit solutions are revolutionising the BFSI industry.

There are also many hidden gems contributing to this revolution, of which I will highlight two here.

The strategic rise of two niche tech innovators

Intellect Design Arena

Founded in 2011, Intellect Design Arena specialises in providing cloud native software solutions for wholesale, consumer, and central banking, wealth, treasury, capital markets, insurance, and more. Its product lineup includes iGCB (Intellect Global Consumer Banking), which offers the iKredit360 credit ecosystem platform, and Intellect Quantum Core for FX, treasury, and payments.

In the iGTB (Intellect Global Transaction Banking) segment, the company offers AI-driven liquidity management for Corporate Treasury Exchange and Paycash CX for payment processing and orchestration. The IntellectAI segment helps in AI-driven documentation in insurance and risk analysis for underwriting.

Its iDTC (Intellect Digital Technology for Commerce) segment offers CPX for Corporate procurement automation, GPX for Government procurement management, and APX for AI-powered accounts payable automation.

Intellect Design’s business vertical includes traditional product sales, a customer-centric partnership model, and cloud deployment and subscription. At present, with reach in 57 countries, the company’s client list includes over 325 names.

Moving to the expansion plans, Intellect Design has recently launched PF Credit. It is an AI-first lending solution that will handle loan origination, underwriting, servicing, collections, and portfolio management. This module can easily integrate into Intellect’s eMACH.ai Lending stack and existing third-party systems.

Strengthening its position in the international market, Intellect’s global consumer banking unit has implemented its eMACH.ai digital engagement platform at Faisal Islamic Bank of Egypt. A few months ago, the company also announced the launch of Purple Fabric (PF) Cloud, which is the world’s first open business impact AI platform. The platform will allow banks, fintechs, and regulators to co-create solutions that are explainable, auditable, and aligned with global compliance standards.

In June 2025, the company signed a major deal with a South African bank to implement its eMACH.ai Digital Engagement Platform that will roll out in nine countries.

Coming to financials, the company posted total revenue of ₹702 crore in Q1FY26, up 15.8% on a YoY basis. The net profit for the June quarter of this financial year stood at ₹94 crore, an increase of ₹19 crore compared to the same quarter of the previous financial year.

Intellect Design earns 17.2% of its revenue from SaaS and subscriptions, 17.6% from licensing, 18.3% from AMC, and the rest from other verticals. Geographically, the company generates 75% of its revenue from international markets.

Intellect Design has not only been a debt-free company for a decade but has also maintained a healthy dividend payout of 18.9%. The company has improved its net cash flow on a year-on-year basis, with a significant improvement in the cash conversion cycle, allowing it to fund operations efficiently.

Although Intellect Design Arena’s one-year return stood at 5.35% and the company is trading at 39.3 times its earnings, it has garnered interest from FIIs, who increased their holdings by 2.9%, from 27.8% in the March quarter of FY25 to 30.7% in the June quarter of FY26. The five-year cumulative return is impressive at 299.8%.

The reason to place Intellect Design Arena in the list is its aggressive expansion across Europe, the Middle East, and Asia-Pacific, along with increasing adoption of its platforms by large banks. The company also has solid institutional shareholding and generates recurring revenue from long-term contracts, which adds to stability. However, how the company competes with global fintech giants and Indian IT product firms will also play a role in its overall performance.

Auriopro Solutions Limited

Founded in 1997, Aurionpro Solutions is a digital technology firm that specialises in enterprise-grade software and fintech solutions.

The company has two business verticals. The Banking and Fintech vertical, which contributes 56% of the revenue, offers products like Self-Service Kiosks, iCashpro+, AuroPay, FXConnect, and more. The Technology Innovation Group (TIG), contributing 46% of the revenue, offers products like Arya.ai and Interact DX.

Aurionpro has a customer base of over 200 clients, including notable names like Stripe Payments, MasterCard, and FIS Worldpay.

Working on its expansion plans, in late September, Aurionpro bagged a multi-million dollar cash management deal with a PSU for software licensing, implementation, and maintenance. Following this contract, the company now has its fourth public sector bank in its portfolio in this segment. Strengthening its position in Australia and Europe, the company acquired Melbourne-based InfraRisk a few months ago. The acquired company specialises in offering lending solutions for financial institutions.

Other recent deals that support its growth prospects include a multi-year agreement with African Bank in July 2025 for licensing and implementing omnichannel digital banking solutions, as well as the implementation of an automated fare collection system for Egypt’s public transport network. The deal in Egypt is essentially a tri-party agreement involving the National Bank of Egypt, Mastercard, and Mwasalat Misr Group. Aurionpro’s scope of work here is to deploy mobile data terminals, advanced validators, and an open-loop software solution.

Aurionpro started FY26 with a multi-year contract worth $2.5 million with a Sri Lankan bank. The deal involves providing the iCashpro cash management system, which integrates solutions from Fintra and Arya.ai.

Talking about the financials, the company has posted ₹337 crores in revenue in the first quarter of FY26, up by around 3% from the previous quarter. The net profit in the June quarter of FY26 and Q4 of FY25 is similar, but EPS has improved slightly to ₹9.3. What’s notable here is that Aurionpro is a debt-free company.

Currently trading at 33 times its earnings, Aurionpro’s share price fell by 29.8% over the span of 52 weeks, but on the flip side, the five-year returns were impressive at 2,973.4%.The 52-week decline was attributed to profit booking after massive long-term gains. Another possible reason is investor sentiment, with a rotation into large-cap defensives amid global volatility and rising US yields.

Reasons to put Aurionpro on the list include its diversified business, which shields it against sectoral risks. The company also has a strong footprint in global banks and Fintech. Also, with urbanisation on the rise, don’t be surprised if Aurionpro’s smart transit and planning tools help them bag public sector contracts.

Fuelled by innovation, tested by competition

The BFSI industry is rapidly evolving with AI. Banks and insurers are embracing AI-first platforms, cloud-native systems, and real-time decision-making, while small-cap firms like Intellect Design Arena and Aurionpro Solutions show that specialisation, speed, and domain expertise now outweigh scale.

As AI-driven lending, digital engagement, and smart payment ecosystems become standard, AI solution providers are poised for growth. Yet, there are challenges in the form of rising cybersecurity threats, strict regulatory compliance, constant innovation demands, competition from global fintech and IT giants, and the need for continuous investment in talent and technology are something not to overlook.

Despite these hurdles, the digital transformation of BFSI is irreversible. Firms offering scalable, secure, and intelligent solutions are set to lead the next wave of industry innovation.

Disclaimer:

Note: We have relied on data from Screener throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.

The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.

Rishabh Sinha is a seasoned financial content creator with over 10 years of experience in BFSI domain. His portfolio spans over 20 of India’s most trusted financial brands. Rishabh brings depth, structure, and a reader-first approach to every piece he crafts.

Disclosure: The writer and his dependents do not hold the stocks discussed in this article.The website managers, its employee(s), and contributors/writers/authors of articles have or may have an outstanding buy or sell position or holding in the securities, options on securities or other related investments of issuers and/or companies discussed therein.  The content of the articles and the interpretation of data are solely the personal views of the contributors/ writers/authors.  Investors must make their own investment decisions based on their specific objectives, resources and only after consulting such independent advisors as may be necessary.

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