Mumbai-based mPOS solutions provider Mswipe has raised $25 million in a series C round of funding from new investors Falcon Edge Capital, Ola Cabs and Meru Capital, and existing investors Axis Bank, Matrix Partners India and DSG Consumer Partners, reports YourStory. The company will use the funds for growth and customer acquisition.
Mswipe had earlier raised an undisclosed amount in a Series B round of investment from investors Matrix Partners and Axis Bank in January last year. The company had also raised an undisclosed amount from Matrix Partners in January 2013, with Axis Bank’s participation. Note that Axis had partnered with MSwipe and Hitachi’s Prizm Payments to launch a mobile point of sales solution in July 2012.
Before this, Mswipe had reportedly received angel investment from former Anand Rathi investment banking head & Mumbai Angels co-founder Praveen Chakravarty and Beacon India Private Equity Fund founder & managing director Deepak Shahdadpuri in 2012.
Founded in 2011 by Manish Patel, Mswipe started with offering a series of point of sale devices like card swipers which plug into the mobile phone’s audio jack to enable POS payments. The company later launched a Chip and Pin compliant mPOS solution called WisepadTM in December 2013, and its ‘SmartPOS’ Android phone that let users make card payments just last month.
As of now, Mswipe claims to work with banks like Axis Bank, Ratnakar Bank, Corporation Bank and SVC Bank and is used by over 4,000 merchants including Carzonrent, Apollo Munich, Costa Coffee, Deals Kart, HDFC Life, Jabong, McDonald’s, Myntra, Quikr and Venky’s etc.
Other developments in mPOS:
– Last month, payments company iKaaz launched a new new point-of-sale terminal which would allow tap-and-pay transactions through smartphones without Near field communications (NFC) enabled. The device called MOWA Wave would be available for all merchants in Bangalore and is expected to be rolled out by August.
– In October last year, Bangalore-based point of sale (PoS) startup Ezetap partnered with the State Bank of India to launch ‘Chota ATM’, a solution that can double as an ATM device as well as a PoS terminal that can accept payments from any debit and credit card. In January 2013, Ezetap partnered with Citibank to launch a mobile payment solution for merchants targeting credit and debit card holders in India. The company had also launched a debit card supporting mobile PoS solution in July 2013 and acquired the Hyderabad-based loyalty platform Clinknow in June 2014 to launch an integrated payments and loyalty solution for merchants across India.
– Last September, mobile financial & VAS company Mahindra Comviva entered into a partnership with payment solution provider First Data to roll out an mPOS solution in India. Comviva had first announced the global launch of payPLUS, its mPOS solution back in June 2013 although the company had not disclosed any signed-up partners for the initiative, thus, making this its first rollout. Note that Mahindra Comviva had earlier launched an mPOS solution called payPLUS in June 2013.
– In July last year, Indian Overseas Bank (IOB) had partnered Chennai-based Skilworth Technologies to introduce a mPOS solution called Bijlipay for SMEs across the country while in January 2013, Reliance General Insurance launched a mobile point of sales solution, that allowed customers to pay insurance premiums using a mobile phone via an external card reader dongle.