Tech Mahindra has announced the acquisition of Avant Techno Solutions, a Canada-based company focused on payments modernization and wealth platforms, in a move that expands its banking, financial services and insurance (BFSI) capabilities. This acquisition will strengthen its work in real-time payments, ISO 20022 migration, wire modernization, core payments cloud transformation and wealth management systems, while also adding sector-specific talent and client relationships in North America.
Exchange-filing data shows Tech Mahindra is buying an initial 85% stake in Avant for CAD 28 million, with the remaining stake to be acquired later under a preset formula. Avant, which was founded in 2017, reported CAD 58.6 million in calendar 2025 revenue, making it a small but focused acquisition by IT-services standards.
In late 2024, CEO Mohit Joshi said the company wanted BFSI to rise to 25% of revenue by March 2027, up from about 16% at the time.
The company’s latest quarterly numbers show why BFSI remains an important focus. Tech Mahindra’s fourth-quarter revenue rose 12.6% to ₹150.76 billion, with BFSI revenue growing 4.7% and new deal wins reaching $1.07 billion.
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What Avant adds
According to Tech Mahindra, the company brings capabilities in real-time rails, ISO 20022 migration, wire modernization, payments cloud transformation, wealth platforms, identity and access management, open banking, commercial lending, regulatory compliance, and fraud and financial crime workflows. Tech Mahindra is adding tools that help banks modernize older payment and wealth systems without rebuilding everything from scratch.
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Tech Mahindra said the acquisition will help clients simplify legacy environments, improve speed to market, strengthen trust frameworks, and build more resilient operating models. That reads like a targeted capability buy rather than a broad technology expansion.
Tech Mahindra has historically been more dependent on telecom-linked business than some of its larger peers, and its leadership has been explicit about shifting toward financial services. Buying Avant gives the company a faster route into payments and wealth technology than building those capabilities only through hiring and internal product development.
The acquisition is included in a broader push to meet changing demand in financial services, where automation, cloud and secure customer experience are becoming standard requirements.
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The value of Avant will depend on whether its domain knowledge can be integrated into Tech Mahindra’s wider delivery engine without losing the specialized expertise that made the target attractive in the first place. If that succeeds, the acquisition could help Tech Mahindra move closer to the BFSI mix it has been targeting.
