Diginex has executed a non-binding memorandum of understanding to acquire Kindred OS, marking its planned entry into the edge AI market.

The company, listed on NASDAQ as DGNX, intends to integrate Kindred’s H1 edge AI platform into its compliance and ESG product offerings.

Diginex did not reveal the financial terms of the transaction.

Edge AI enables the deployment of AI models directly on local hardware, thereby reducing reliance on external cloud infrastructure.

According to Diginex, the integration of Kindred’s technology will allow organisations to process data such as ESG metrics and risk assessments internally. This keeps data within their own infrastructure and avoiding transfer to third-party data centres.

Diginex said that this approach is relevant for sectors with strict data governance requirements, including financial services and healthcare.

Diginex founder and executive chairman Miles Pelham said: “Compliance and reporting are evolving from static checklists into living and evolving intelligent systems.

“Edge AI allows us to place trusted intelligence within an organisation’s own secure IT ecosystem, which is perfectly aligned with Diginex’s mission to make compliance transparent, efficient, and responsible.”

Diginex stated that the acquisition aligns with its objective to develop regulatory technology solutions that use AI within privacy-controlled environments.

The company aims to automate compliance functions and produce analytic outputs without exposing sensitive information externally.

Diginex also pointed out that using edge AI could reduce the operational costs and latency associated with cloud-based models.

The edge AI market was valued at $20.78bn in 2024 and is forecast to reach $66.47bn by 2030, with a compound annual growth rate of 21.7% from 2025, stated Diginex.

The company indicated that its move to integrate edge AI addresses the demands from regulated industries for privacy-centric compliance and governance technologies.

Diginex mergers and acquisitions (M&A) and strategic development head Lorenzo Romano said: “Edge AI bridges the gap between innovation and regulatory integrity.

“By combining Diginex’s regulatory expertise with Kindred’s local AI architecture, we aim to set a new benchmark for how AI will enhance both performance and compliance in the years ahead.”