Prepaid payments company Money on Mobile (My Mobile Payments Limited), has managed to make its own wallet heavier by raising $1.3 million in cash, and 1,845,385 shares, from twenty-five year old Texas-based electronic processing company, Caplain Inc; the company has a commitment of raising a total of $9.7 million in cash and 6,123,077 in common stock from Caplain, according to a filing with the US SEC. Calpain is public listed venture, and at current prices ($3.25) would be valued at $19.9 million, taking the fund raising to around $29.6 million. However, the issuance of shares is contingent upon "the lead founder delivering certain assurances from the company’s existing shareholders." This is Calpian's first investment outside of the US. Launched in April 2011, after getting a nod for semi-closed service system from the RBI, MoM now claims to have a presence in over 200 cities by providing mobile payment services for phone or DTH recharge, and ticketing for rail, bus, flights, and movies, as well as the payment of utility bills. It has a user base of 2.7 million users, and on the basis of its January 2012 transactions, it processes around $72M in transactions each year - which works out to around Rs 30 crore per month. In April 2011, the company had claimed transactions of around Rs 10 crore a month. Customers are allowed a transaction limit from Rs 5000 to Rs 50,000, using "mobile-based semi-closed prepaid instruments issued by non-banks" on par with other semi-closed payment instruments. Structuring Of…
