Mumbai-based mPOS startup Mswipe has reportedly raised $31 Mn funding in Series D round, led by UC-RNT Fund. UC-RNT Fund is the joint VC fund between Chairman Emeritus of Tata Sons, Ratan Tata and the University of California.
Existing investors Matrix Partners India, Falcon Edge Capital, and DSG Consumer Partners also participated in the round apart from the Ratan Tata backed fund.
Vikram Vaidyanathan, Managing Director, Matrix India said, “Mswipe is the ‘universal acceptance’ solution for all merchants enabling them to accept any payment instrument – cards, wallets, UPI, NFC etc. In a rapidly changing payments landscape, Mswipe’s open technology platform and ability to deliver solutions at the lowest cost sets them apart. We are privileged to partner with Manish and team on their journey to create India’s largest digital acceptance network”.
With this round till date, the company fundraise shoots to about $63 Mn. The company will use the funds to develop its network of merchants accepting digital payments in the country.
The Mswipe Story
Founded in 2011 by Manish Patel, mPOS startup Mswipe is a wireless payment system which provides mobile payment service to SMEs and enterprise clients. It also allows merchants to undertake plastic card payments through smartphones or ordinary feature phones.
In 2015, Mswipe had raised $25 Mn in its Series C round of funding from New York-based hedge fund Falcon Edge Capital, investment firm Meru Capital and ride-hailing app, Ola. Existing investors Matrix Partners India, Axis Bank, and DSG Consumer Partners also participated in the mPOS startup funding round.
In May 2017, Mswipe took over the offline merchant acquiring the business of PayU India.The company currently claims to have 246K terminals, across 550+ cities with a combined team strength of 2,000+ employees. The company claims to have an annualised value of total transactions across its network to be about $1.4 Bn (INR 9,560 Cr).
Talking about the funding Manish added, “This round of funding from UC-RNT and our existing investors is an endorsement of our vision to disrupt the merchant acquiring and electronic payment acceptance industry through technology. Merchants across the board are now looking to streamline and automate processes. At Mswipe, we are working towards developing the next generation Android-based smart POS terminals that will offer merchants capabilities like GST compliant billing and inventory management with integrated and seamless payment acceptance, on the same device. Merchants can further develop customised Android applications and easily integrate Mswipe’s payment platform with such apps using these smart POS terminals.”
Digital India – mPOS
Post-demonetisation the digital payments sector got an immense push. As per the company statement, Mswipe claims that almost 80% of its customer base comprises SME merchants. The company also claims that, in the last one year, transaction value on the Mswipe network has grown 4x, while the number of installations has grown 3x.
The digital payments industry in India is projected to reach $500 Bn by 2020, as a per a report by Google and Boston Consulting Group. Another recent report stated that the Indian digital economy is poised to grow to an estimated $4 Tn by 2022, as per assessment of technology companies.
Just yesterday, it was reported that Mswipe competitor, Bengaluru-based mPOS startup Ezetap acquired FortunePay for an undisclosed amount. The acquisition aims to enable Ezetap further expand its payments technology. Other startups in this segment include Paynear, ePaisa, Mobiswipe among others.