Singapore-based Next Generation Payments has acquired 100% stake in its Bangalore-based subsidiary JiGrahak Solutions which operates the mobile payments platform ngpay, reports Techcircle. The details of the transactions are undisclosed.
Earlier in August, e-commerce marketplace Flipkart’s holding company Flipkart Pvt Limited had invested an undisclosed amount in JiGrahak . Post this current deal, Flipkart will hold 65.71% stake in ngpay and Sourabh Jain, the promoter-shareholder of ngpay, will hold the remaining stake. As per the agreement, Jain and Flipkart have set up ngpay in Singapore. Helion Ventures had also invested $2.2 million in JiGrahak Solutions in 2006.
Flipkart’s investment in ngpay is significant as the company had begun phasing out its own payments gateway Payzippy after the Reserve Bank of India did not grant a semi-closed wallet licence in 2013. Flipkart said that nothing will change for customers, since the technology developed by the Payzippy team will continue to power payments for Flipkart, but however, Payzippy and is not accepting any new merchants at the moment.
Ngpay is a mobile app based marketplace, offering ticketing from IRCTC, multiple bus travel services, flight tickets, apart from recharging and top-ups, cinema tickets and events. Payments are allowed via Mastercard, Visa, Maestro and American Express. Launched in February 2008, ngpay was one of the first players in mobile commerce in India and now claims over a million users in the country.