The Indian VC community is showing a keen interest in the mobile payment space, where all the moolah is. In the beginning of 2014, Techcircle had shared an unconfirmed news that the Mumbai based mobile POS services provider Mswipe Technologies Pvt Ltd had raised its Series B round of funding. The news has been confirmed recently that the firm has raised Series B round of funding, led by existing investor Matrix Partners, with participation from Axis Bank and DSG Consumer Partners. However, the funding amount has not been disclosed.
The fresh round of funding comes after the firm raised an angel round of funding from a group of investors in 2012. The round included Deepak Shahdadpuri, Founder and MD, Beacon India Private Equity Fund, and Praveen Chakravarty, former head of investment banking at Anand Rathi. Later in the early part of 2013 the company raised its series A funding again led by matrix Partners but no further details were disclosed.
Detailing about the latest Series B round of funding, Founder and MD Manish Patel shared that the capital will be used to expand its merchant aggregation business and to acquire new customers. Armored with the fresh round of funding Mswipe intends to provide affordable mobile PoS solutions directly to merchants in 200 Indian cities as well as work with partners like insurance agents, home delivery among others.
The Mumbai based firm was founded in March 2011 by Manish. The firm that essentially targets SMBs with its PoS solutions considers it to be a large market opportunity with small merchants craving cost-effective mobile payment terminals and adopting front-end PoS technology.
The firm known to provide phone based PoS service for small merchants that enables plastic card payments via mobile phone, also provides a card reader that can be attached to any mobile phone (be it smartphone or feature phone) via a 3.5mm headphone jack. Once attached, the card reader converts the mobile phone into a card acceptance device.
Taking the technology further last year the company launched an EMV (Europay, MasterCard and Visa) compliant mobile PoS solution, called Wisepad. It is a Bluetooth enabled device that does not require any physical connection to the phone. Using Wisepad, merchants can accept credit and debit cards with the same security & speed as conventional PoS terminals at a very affordable price point and competitive card interchange fees. The company is looking to partner with leading banks to deploy these terminals at small and mid-sized merchants across the country.
The fresh round of funding led by the existing investors Matrix India indicates the strong progress the company has shown over the years and the vast market potentials in the mobile PoS solutions.
Recently Delhi-based Cobboc Pvt Ltd, which offers a mobile-based payments app Eashmart, raised an undisclosed amount in funding and also the Bangalore-based mobile payment solutions provider iKaaz raised an undisclosed amount in seed round of funding.