Bangalore based QwikCilver Solutions has raised $10 million investment led by Singapore-based Amazon Asia Pacific and participation from existing investors Accel Partners and Helion Venture Partners, reports the Times of India. It says Amazon has picked up just under 15% stake in Qwikcilver following this investment.
QwikCilver founder Kumar Sudarsan said that they will be using some of the funds raised to provide mobile gifting solutions. The company is also considering a single self-branded gift card that can be used by consumers across its client base. Qwikcilver claims to currently have retailer clients like Titan, Raymond, Shoppers Stop, Westside and Hidesign among others. It also operates an online gift card & gift vouchers store Giftbig.com besides powering the gift card service for both Amazon and Flipkart.
Amazon gets access to prepaid wallet
This investment has been doing the rounds since November 2014, wherein it was indicated that Amazon India was in advanced talks to pick up a minority stake in QwikCilver. As we had said then, this is probably a strategic investment for Amazon, since it would give them access to Qwikcilver’s semi closed wallet system, allowing Amazon customers store money in their wallet and use it to purchase products from the site. Note that QwikCilver had secured a five-year prepaid mobile wallet license from RBI in August 2013 along with Mobikwik and Paytm.
Flipkart also has a prepaid wallet service although it was later restricted to products sold only by WS Retail, that manages the e-commerce major’s front end retail operations. The company had failed to secure a semi closed prepaid wallet license, which is needed to extend its wallet service to all sellers on its platform and is currently phasing out its payment gateway business Payzippy and is not accepting any new merchants at the moment.
Note: This investment was announced on Dec 24, 2014, when we were on a break.