Mswipe Looks To Take Another Swipe At POS Industry Dominance With $31.5 Mn Funding

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SUMMARY

B Capital, DSG Consumer Partners, Epiq Capital and Falcon Edge invested in Series E round

Funds will be used to expand the present business activities

Mswipe acquired PayU India’s offline business in 2017

Mumbai-based mobile point of sale (mPOS) network provider Mswipe has raised INR 218.99 Cr ($31.5 Mn) in a Series E funding round.

Data intelligence platform Paper.vc was the first to report Mswipe’s funding. According to a Ministry of Corporate Affairs filing dated March 8, 2019 accessed by Inc42, the company raised funds from B Capital, DSG Consumer Partners, Epiq Capital and Falcon Edge by issuing 219.8K Series E Compulsorily Convertible Preference Shares (CCPS) with a nominal value of INR 10 at a premium of INR 9,950 per share.

Here’s the breakdown of the Series E round:

B Capital Asia was issued 70, 281 CCPS at INR 69.9 Cr
DSG Consumer Partners was issued 21,000 CCPS at INR 20.9 Cr
Epiq Capital was issued 36,312 CCPS at INR 36.16 Cr
Epiq Capital B was issued 35,140 CCPS at INR 34.99 Cr
Falcon Edge was issued 57,146 CCPS at INR 56.9 Cr

Founded in 2011 by Manish Patel, Mswipe is a mPOS network provider, which allows merchants to undertake plastic card payments through smartphones or ordinary feature phones. Prior to this round, the company has raised a sum of over $73.3 Mn from marquee investors.

Inc42 noted in the filings that Mswipe will use the Series E funds to expand the present business activities of the company by financing the working capital and other business operation requirements.

Inc42 DataLabs in its What The Financials analysis noted that since Mswipe acquired Payment gateway services provider PayU India’s offline business in 2017, it has been offering in-house payment gateway services for merchants. This has helped Mswipe to create a new stream of revenue — payment gateway charges — which used to earlier got to its partners.

This has also helped the company streamline its offering, creating an end-to-end payments service system.

In the Indian POS terminal market, which is pegged to reach $450 Mn at a CAGR of over 10% from 2017 to 2024, Mswipe continues to be one of the major players against newbies such as Pine Labs, Ezetap etc.