Payments technology company Financial Software & Systems (FSS) has raised Rs 350 crore from Premji Invest, Wipro boss Azim Premji’s investment vehicle. Premji Invest will now own a minority stake in FSS, though the exact value of the stake hasn’t been disclosed.
The Chennai-headquartered company said that the funds will used for improving its digital payments services offered to e-commerce and m-commerce clients and remittance businesses. Part of the funds will be used to improve its hosted services, like Transaction Switching, ATM & PoS Managed Services and Deployment. The company will also be using the funds to further expand in global markets.
FSS founder and managing director Nagaraj V Mylandla also said that FSS plans to go public within the next 18 to 24 months. FSS had earlier raised funding from PE fund Carlyle and another round from New Enterprise Associates (NEA) and PE firm Jacob Ballas.
FSS claims to provide payment services to over 100 banks and financial institutions across the globe. It also provides services to retail delivery channels like ATMs and Point-of-Sale (PoS) terminals among others. Its clients include State Bank of India, ICICI Bank, HDFC Bank, Punjab National Bank, and Canara Bank among others. The company claims to have a presence in 7000 locations across India and claims that it oversees 6 million transactions every day.
Investments by Premji Invest
Flipkart-owned online fashion store Myntra had raised $50 million (around Rs 300 crore) from Premji Invest and others, in February this year.
In May 2014, Premji Invest, along with BlackRock Inc., Myriad, and Tybourne, had invested $100 million in Snapdeal in a round led by Temasek Holdings and BlackRock.
It’s worth noting that in July this year Wipro had set up a $100 million venture capital fund to invest in early-to-middle stage technology startups across the world. This initiative is being led by Wipro’s Chief Strategy Officer Rishad Premji, Azim Premji’s son.