TranServ Private Limited, a prepaid payments program manager, has raised funding from Nirvana Venture Advisors Private Limited. As part of the deal, Amit Patni, Chairman of Nirvana Venture Advisors and Rajan Mehra, Managing Director of Nirvana Venture Advisors will join the TranServ board of members.
According to a statement from the company, the funding will allow TranServ to scale up its operations and resources, to deliver current and planned payment products. It appears that TranServ offers a technology and management platform to prepaid payment companies, and does not operate its own prepaid cards business.
TranServ was founded in 2011, and offers prepaid card programs to banks, retailers and other companies. The solutions offered by TranServ enable customers to build, operate and manage prepaid programs, which include mobile payment solutions. The company enables distribution of payment solutions through its business correspondents who are located across India, focusing on electronic transactions among the under banked communities. The company’s website was under construction, at the time of writing this post.
Companies offering prepaid payment products in India include ITZ Cash, Oxigen, Beam, and PayMate among others. There are about 20 companies with prepaid licenses in India. The transaction limit on these prepaid cards was increased to Rs 50,000 last year.
In April, India had announced that businesses which operate Stored Value cards, Smart Cards and Value Added Cards, Charge Cards, Debit Cards etc (payment mechanisms, all) can raise up to 100% foreign direct investment. These businesses are allowed to raise money under the automatic route, without having to go the Foreign Investment Promotion Board. However, it did impose some minimum capitalization norms. So we can expect more companies foraying into prepaid payment products.
Anupam Saxena also contributed to this post