IppoPay Marks Second Acquisition In 2022; Buys Tech Startup Roamsoft

Neobank startup IppoPay has acquired Tamil Nadu-based startup Roamsoft Technologies for an undisclosed amount in an all-cash deal.

With this, IppoPay will acquire Roamsoft’s product suite and also develop its in-house capabilities. As part of the deal, IppoPay will onboard Roamsoft’s entire team and also have exclusive rights to its trademark, licences and products, etc.

The development comes after IppoPay’s acquisition of AI-enabled risk management startup Tutelar for an undisclosed sum in September. During this time period, it also claimed to have offered services to 1.7 Lakh+ Tamil Nadu-based micro, small and medium enterprises.

Founded in 2009 by K.Mohan Paul, Roamsoft offers varied services such as web development, digital marketing and mobile app development, among others to fintech and ecommerce industries.

“IppoPay is on a massive growth trajectory and it is important for us to have the right talent pool to keep up the pace of growth. In Roamsoft, we are bringing in a terrific team of fintech builders who are deeply aligned with our culture and mission,” said Vaibhav Domkundwar, CEO of Better Capital, which is an investor in IppoPay. 

Set up in 2020 by Mohan K and Jaikumar R, IppoPay operates a full-stack API financial services platform. It helps companies meet the banking needs such as fund transfer, lending and buying insurance, among others.

IppoPay said that it plans to become a full stack payments infrastructure provider for agritech, education and MSMEs companies. It also claims to have annualised revenue of more than $25 Mn.

“We see this acquisition akin to organic growth for us due to cultural fit that Roamsoft brings to the table with its leadership and development team. Ultimately, the goal of such acquisitions is to optimize time on development and bring people on board who can add value to us in the next phase of growth,” said Mohan K, CEO and cofounder of IppoPay.

Earlier this year, the startup secured $2.1 Mn in a seed funding round from Coinbase Ventures, Better Capital, Blume Founders Fund, and some angel investors. Prior to that, it bagged an undisclosed amount of pre-seed funding in 2021 from existing investor Better Capital, M2P’s Prabhu Rangarajan and Rocketship VC’s Sailesh Ramakrishnan.

In India’s neobanking space, it faces competition from the likes of Open, Fi Pockets and Niyo, among others. 

As per a Grant Thornton report, the country’s neobanking sector was pegged at $3.42 Bn in the FY22. The industry is set to become a $11.6 Bn space by FY25, growing at a CAGR of 50.5% by FY25.

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