Mumbai-based fintech startup MoneyOnMobile has raised $5 Mn in Series H funding from Russia-based private aviation and aerospace holding company S7 Group. The development comes just two weeks after the startup secured $7.6 Mn Series F funding from undisclosed investors.
The latest fundraise took place through the issuance of Series H convertible preferred shares.
As per the company’s spokesperson, the capital infusion will enable MoneyOnMobile to drive growth across its range of products.
Commenting on the development, Oleg Gordienko, Director at S7 Group Investment, said “The S7 Group has implemented several new technological improvements to various operations and payment processes across our holdings. We look forward to using our world-class expertise in India’s fast developing payments market to continue MoneyOnMobile’s growth.”
How MoneyOnMobile Clocked 270% Growth In Monthly Net Revenue
Founded in 2010 by Jolly Mathur, Rajat Sharma, Ranjeet Oak and Shashank Joshi, MoneyOnMobile is an RBI-authorised fintech startup that offers mobile payments services to its users.
The company’s solutions are designed is to facilitate easy, safe and secure financial transactions from one mobile to another. Users can transfer funds using just an SMS as well as through MoneyOnMobile’s website and mobile application.
Related Article: MoneyOnMobile To Invest $6.2 Mn To Fuel Its India Expansion Plans
The startup believes in providing service to unbanked consumers, in order to bring them under the umbrella of financial inclusion.
MoneyOnMobile originally raised $10 Mn in a venture funding round from Calpian Inc back in September 2013. Later in December 2016, it picked up another $1.5 Mn through debt financing from YES Bank.
Most recently, in the fourth week of January, the fintech platform raised $7.6 Mn Series F round funding from undisclosed investors.
Speaking about the latest $5 Mn fundraise from S7 Group, Harold Montgomery, CEO and Chairman of MoneyOnMobile stated, “We are excited to have the institutional investment support from the S7 Group. This capital infusion will enable us to continue to execute our business plan and drive growth across our product lines.”
“As part of the deal we will bring to our board a strategy for how to leverage technologies the S7 Group has used to identify new growth opportunities, and will benefit from their experience in this area. Having worked with the principals at S7 Group over the last few years, I appreciate their confidence and enthusiasm about the future of MoneyOnMobile,” Harold added.
As mentioned on the company website, MoneyOnMobile posted a 270% growth in monthly net revenue from January to October 2017.
The company accredited this growth to the increase in the number of ATMs on the ground as well as a domestic remittance product, which had grown rapidly over the last several months. Its gross profit increased 79% YoY to more than $1 Mn in the second quarter of FY18.
Poised to reach $500 Bn by 2020 according to a report by Google and Boston Consulting Group, the digital payments and fintech segment in India is growing by leaps and bounds.
As per Inc42 DataLabs Indian Startup Funding report 2017, the Indian fintech industry has received $2.5 Bn funding in 2017. Inc42 Datalabs further indicated that startups in the fintech industry raised more than $50 Mn in funding in January 2018 alone.
Competing against well-funded players like Paytm, FreeCharge, MobiKwik and PhonePe, among others, how MoneyOnMobile uses the newly-secured Series H funding from S7 Group remains to be seen.