Mobile payments provider Mswipe in talks to raise up to $40 million
Mobile payments services provider Mswipe Technologies Pvt. Ltd has initiated talks to raise up to $40 million (around ₹250 crore) in a new round of funding, two people aware of the development said.
The company 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, requesting anonymity as the talks are private.
“The company has recently mandated Avendus to run the fund-raising process and has initiated conversations with investors for the same. It is looking raise between $30-40 million in this new round. Funds will be used majorly to enroll 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 have increased after Prime Minister Narendra Modi announced the withdrawal of ₹500 and ₹1,000 notes on November 8. These two currency notes formed the bulk of the currency bills in circulation in the country.
According to data from the Reserve Bank of India, credit and debit card transactions at PoS terminals saw a 106% year over year growth in December 2016.
“Demonetisation has been a shot in the arm for payments firms. Mswipe’s business was growing strongly before demonetisation, but post November, the numbers has seen a sharp increase, which will make the company more attractive for 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.
The last fund-raising at Mswipe was in July 2015, when the company raised ₹160 crore.
Mswipe was founded in 2012 by Manish Patel, a doctor by education. Mswipe provides a mobile payment solution with a card reader, which can be attached to any mobile phone’s audio (headset) jack.It works closely with smaller banks such as Corporation Bank Ltd, RBL Bank Ltd, Shamrao Vithal Co-op Bank and large ones such as Axis Bank Ltd.