Bengaluru-based payments gateway platform JusPay has raised $21.6 Mn in a Series B funding round led by Sweden-based Vostok Emerging Finance (VEF) with an investment of $13 Mn.
Besides this, Boston-based Wellington Management also participated in the round, along with its existing investors like Accel Partners. With this funding round, VEF also got a representation in JusPay’s board of directors.
With this funding, JusPay is looking to invest in research and development (R&D), expand its market presence in India and expand to the overseas market. Vimal Kumar, CEO and founder of JusPay, believes that there is massive growth potential in the digital transactions in the upcoming q0 years as “software are eating the world, radically changing” day-to-day lives.
Prior to this, the company had raised $5.8 Mn in Series A round in 2016, where Accel Partners and BookMyShow founders Ashish Hemrajani, Parikshit Dar and Rajesh Balpande had invested.
Founded in 2012 by Kumar and Ramanathan RV, JusPay provides a full-stack digital payments software-as-a-service (SaaS) platform that enables secure and frictionless payment experience. As per JusPay, its software development kit (SDK) has seen more than 200 Mn downloads and has led to an annual payment volume of $10 Bn. The company’s clientele includes Amazon, Flipkart, Uber, Swiggy, Ola and Cred.
JusPay was also shortlisted for Microsoft’s tech accelerator initiative, Microsoft for Startups. Under this, Microsoft will help startups, which are on product development stage to explore emerging technologies such as artificial intelligence (AI), internet of things (IoT), and blockchain among others, and gear up for Microsoft’s co-sell programme.
As per Datalabs by Inc42 report, Fintech Outlook 2019, there are over 2707 fintech startups in India, and more than $5.29 Bn has been invested in this sector between 2014-2018. Even Niti Aayog CEO Amitabh Kant has previously highlighted that the Indian fintech market is expected to expand to $31 Bn in 2020.
Meanwhile, with the ongoing coronavirus pandemic and lockdown in India, digital payments are bound to get hit as only daily essentials are available. However, before the lockdown was announced several industry leaders had taken to Twitter to encourage users to adopt digital payments. Industry leaders have already noted a decline of around 30% in the last couple of weeks and it is bound to get worse as the situation persists. UPI volume also fell in March for the first time.