As FinTech startups are fast gaining traction, many investors are shifting their focus on them. The most recent case being the VC firm Sequoia investing $6 Mn in Backwater Technologies, the startup behind Chillr app, in a Series A funding round. The app allows users to transfer money to their contacts in their phonebooks. The round is not closed yet and there will be other investors joining in the next few weeks.
Mumbai-based Backwater Technologies will use the fund for customer acquisition, technology upgradation and strengthening the team. . It has already tied up with HDFC Bank, Bank of Baroda and plans to partner with 15 more banks by the year end.
“We have crossed four lakh transactions since Chillr’s beta launch in February 2015 and customer feedback has been amazing. Unlike wallets, which reduce the number of times users have to enter bank/card details, Chillr is probably the only app that simplifies payments end-to-end and eliminates the need of entering these details. We have witnessed that average peer-to-peer transaction value is close to INR 1000 and most users recharge their mobiles three or more times in a month. This proves that users are preferring to use digital money and the capital infusion will help us enhance our offerings and achieve the vision of enabling a digital economy,” said Sony Joy, cofounder and CEO of Chillr.
Chillr currently, registers over 5000 transactions worth $76000 a day and is aims to achieve 1 lakh transactions per day by end of this year. It already has 3.5 lakh installs, with 2 lakh customers who have linked their bank accounts to the app in order to facilitate transactions. It ensures that all transactions are authenticated by a 4-digit MPIN issued by the bank. From peer-to-peer transfers to bill payments and mobile recharges, the company now aims to tie up with 30,000 merchants, by the end of March 2016.
The company had previously raised $1 Mn from MobMe Wireless – it’s parent company, and plans to raise about $1.5 Mn in another round soon. Currently, the team size is 70 and the company plans to bring this number up to 150 by the end of current fiscal year.
Momoe is another P2P mobile payments startup that raised$1.2 Mn in seed funding in a round co-led by IDG Ventures India and Jungle Ventures. Mumbai-based India Quotient also participated in this round. The app enables people to make payments using their mobile phones while eating out, shopping or commuting.