[Update] Exclusive: Mswipe Raises $20 Mn From Alpha Wave Ventures, Others

SUMMARY

The fresh fund raise came on the heels of Mswipe receiving the payment aggregator license from RBI

The startup is likely to utilise the fresh capital to develop an in-house online payment gateway and offer full-stack payment solutions

Late last year, Mswipe expanded its services to the UAE in partnership with Etisalat by e&

Update | February 27, 16:00 PM

Hours after Inc42 exclusively reported about MSwipe’s latest fund raise, the fintech startup in an official statement announced raising of $20 Mn from its existing investors. The startup in the statement said it intends to utilise the fresh capital to increase its merchant payment network and further strengthen product development and technological infrastructure.

Original Story| February 27, 13:30 PM

Fintech startup Mswipe is raising $10 Mn (INR 83 Cr) in debt from its existing backer Alpha Wave Ventures. The Mumbai-based fintech’s board of directors have passed a resolution to allot compulsory convertible debentures to Alpha Wave as per the startup’s regulatory filing.

The fresh development comes close on the heels of Mswipe receiving the payment aggregator (PA) license by the Reserve Bank of India.

This comes after the company received an in-principle nod from the central bank to operate as a PA in August 2022.

After receiving the in-principle approval, Mswipe said it would develop an in-house online payment gateway and offer full-stack payment solutions to both offline and online merchants. It is likely that the fresh debt raised will be utilised to offer full-stack payment solutions to its customers.

Mswipe, founded in 2011 by Manish Patel, offers digital payment solutions to merchants. Its offerings include POS terminals with integrated offline and online card payments, QR codes and audio devices for payment confirmation.

As per media reports, the startup was eyeing to raise $75 Mn in a funding round earlier last year. However, that round seems to have not materialised. The latest debt funding comes almost four years after the startup raised $30 Mn in its Series E funding round from existing investors Falcon Edge (now Alpha Wave), B Capital, Epiq Capital and DSG Growth Partners.

In FY23, the startup’s net loss declined 45% to INR 49.1 Cr, from INR 90 Cr in FY22 as it was able to reduce its cash burn.

The company’s revenue from operations rose 14% to INR 274.5 Cr during the year under review from INR 240.7 Cr in FY22.

Besides this, in November 2023, Mswipe elevated chief executive officer (CEO) Ketan Patel as a cofounder. Prior to that, Mswipe expanded its services to the UAE in partnership with Etisalat by e&

Mswipe competes against the likes of PhonePe, Paytm, Ezetap, and Innoviti.

Step up your startup journey with BHASKAR! From resources to networking, BHASKAR connects Indian innovators with everything they need to succeed. Join today to access a platform built for innovation, growth, and community.