Mumbai-based fintech startup MoneyOnMobile has raised $7.6 Mn in Series F round of funding through preference shares.
The company plans to use these funds to execute their business plan and drive growth across its product lines.
Harold Montgomery, CEO and Chairman of MoneyOnMobile said, “We are pleased with the positive response from investors and the speed with which we closed this investment during what is normally a relatively slow time of the year for fundraising.”
Founded in 2010 by Jolly Mathur, Rajat Sharma, Ranjeet Oak and Shashank Joshi, MoneyOnMobile offers mobile payments services to its users. The idea is to facilitate easy, safe and secure financial transactions from one mobile to another. A user can transfer funds using just an SMS text or use MoneyOnMobile application or its website.
The startup believes in providing service to the unbanked consumer, using Financial Inclusion and self-dependence.
MoneyOnMobile last raised $1.5 Mn funding through Debt Financing from Yes Bank in December 2016. Earlier than that, in September 2013, the company raised $10 Mn in its venture funding round from Calpian Inc.
As mentioned on the company website, in November 2017, the company posted Q2 results for FY 2017-2018, reporting 270% growth in its monthly net revenue from January to October 2017.
MoneyOnMobile accredited this growth to increase in its ATM’s on the ground and a domestic remittance product which had grown rapidly. Its gross profit increased 79% Year-on-year basis to more than $1 Mn in the quarter.
The company competes with majors like PayTm, Freecharge, Mobikwik among others.
In its report “India’s Digital Leap: The Multi-Trillion-Dollar Opportunity” of September 2017, Morgan Stanley projected India’s digital payments penetration to increase from 5% today to 20%, and the e-commerce market to reach $200 Bn, with 475 Mn ecommerce shoppers, adding up to a GDP upwards of $6 Tn — all by 2027.
As per Inc42 DataLabs Indian Startup Funding report 2017, Indian Fintech Industry has received $2.5 Bn in 2017. A NASSCOM report has earlier forecasted that Indian fintech software market will touch $2.4 Bn by 2020, from the present $1.2 Bn.
Inc42 Datalabs has further indicated that in January 2018, fintech industry has raised more than $50 Mn in funding. It will be seen what comes next in customer experience and innovation from startups like MoneyOnMobile.