Digital payments giant Paytm has acquired New-Delhi based Cube26, a tech startup backed by Tiger Global and Flipkart with $7.7 Mn Seed funding in 2015. Cube26 has customised Android OS and developed various applications for OEMs to give them a competitive edge
After the acquisition, the Cube26 team will join the digital payments company to work towards adding more social engagement features to Paytm’s products and services and improving customer service.
The acquisition will help Paytm leverage the work that Cube26 has done in this area.
“We are focused on building a more immersive and feature-rich mobile experience for our large active user-base,” said Madhur Deora, the chief financial officer at Paytm.
Founded by Saurav Kumar and Abhilekh Kumar Agarwal, Cube26 was formerly known as PredictGaze; it started operations in 2012 in California.
Saurav Kumar, CEO and Co-Founder, Cube26 said, “Our team has been building technology products that are used by millions of users. I believe our diversified experience in creating smarter products across software and hardware segments will help add value to Paytm and to several of its products and services.”
Cube26 has built a platform for local service providers and smartphone users to enable product-led monetisation through its local app and game store. It previously developed the next generation of technology that allows devices to recognise users, interpret human gestures, and understand their emotions.
At present, Cube26 is mainly working in the space of machine learning, enterprise software, and other such technology. Paytm plans to leverage Cube26’s expertise to improve its customer experience and stickiness.
The development comes soon after Paytm announced its full-stack service for Paytm Inbox on its app. The company claims to have more than 120 Mn monthly active users and expects strong growth after the addition of these new features.
Earlier, in December 2017, Paytm also acquired Bengaluru-based O2O deals platforms Little and Nearbuy, wherein it arranged a merger of the two startups and made a strategic investment in the resultant entity for a majority stake.
Prior to that, Paytm acquired a majority stake in ticketing platform Insider.in and also invested in MobiQuest’s loyalty platform m’loyal. The acquisitions are in line with Paytm’s strategy of becoming more than a digital wallet and expanding the categories in which its digital payments services are being used.