Mobile payments provider Mswipe in talks to raise up to $40 million

MUMBAI: Mobile payments services provider Mswipe Technologies Pvt. Ltd has initiated talks to raise as much as $40 million (around ₹250 crore) in a new round of funding, two people aware of the development said.

The firm which provides merchants with mobile point of sale (PoS) terminals to enable digital transactions, has appointed investment bank Avendus Capital to help it raise funds, said one of the two people cited above, seeking anonymity as the talks are private.

“The firm recently mandated Avendus to run the fund-raising process and has initiated conversations with investors for the same. It is looking raise $30-40 million in this new round. Funds will be used majorly to enrol larger number of merchants for its PoS devices,” he said.

The fund-raising comes at a time when the number of cashless transactions in the country has increased after demonetisation. Credit and debit card transactions at PoS terminals saw a 106% year-on-year growth in December, according to RBI.

“Demonetisation has been a shot in the arm for payments firms. Mswipe’s business was growing strongly before demonetisation, but post November, the numbers have seen a sharp rise, which will make the firm more attractive to investors,” said the second person cited above, also requesting anonymity.

Emails sent on Friday to Mswipe were not answered. A spokesperson for Avendus Capital declined to comment on the development.

Mswipe provides a mobile payment solution with a card reader, which can be attached to any mobile phone’s audio (headset) jack. The firm also provides similar card payment solutions for smartphones.