Multi-bank mobile banking app Chillr has raised $6 million in a Series A round of funding from Sequoia Capital. According to the platform, the funding round is not complete yet, and other investors will be investing in the coming weeks. Chillr will use the funding to grow its business.
Launched earlier this year, Chillr currently lets HDFC Bank and Bank of Baroda customers send and receive money, while customers of other major banks can only receive money. According to the startup, the platform eliminates the need for an OTP or remember the account number and passwords. The app also claims to allow users to send money to others near them, without knowing their phone number.
As for the charges, Chillr claims it does not charge end-customers or banks for transactions, however individual banks are free to levy transaction charges on customers, which usually range around Rs 3-5 when applicable. According to the company it requests banks to keep transactions free of cost to promote digital transactions.
The app also allows users to recharge mobiles, data cards or DTH accounts directly through their savings accounts. All transactions are authenticated through a 4-digit MPIN issued by the bank, similar to PIN numbers that come with debit/credit cards, to avoid fraud. Users do not need to load up their account with money, rather the app will deduct it directly from the user’s savings account. The app is currently available on Android, iOS and Windows.
Chillr, which tied up with HDFC Bank to offer mobile banking solutions in February, currently claims to have over 200,000 users with linked bank accounts, with around 400,000 transactions. As of now, the platform claims to have achieved Rs 18 crore in transaction value.
Chillr was initially incubated by MobME Wireless Solutions Ltd as a product, however post development, it was spun off as an independent entity in December 2014. Note that in January last year, MobME Wireless has postponed its IPO plans and raised $3 million in angel funding instead.
Developments in the digital payment space:
– Last month, Mobile VAS and Internet products company Spice Digital launched a new mobile wallet called SpiceMudra which would focus on domestic remittances.
– The same month, mobile commerce marketplace and digital wallet Paytm announced its plans to add movie and entertainment tickets on its platform. Vijay Shekhar Sharma, founder and chairman of Paytm said that it was planning to create a marketplace for entertainment tickets with deals and offers.
– Again last month, online recharge and couponing service Freecharge launched its wallet with private sector lender YES Bank. India’s third largest private sector lender Axis Bank also launched a mobile app which integrates wallets, banking, payments and shopping called Lime.
– In July, the RBI granted a wallet license to Eko India Financial Services, Card Pro Financial Services and Paul Fincap Private Limited.
– The same month, Telecom operator Aircel through its subsidiary, Aircel Smart Money Limited, secured five-year prepaid mobile wallet license from the RBI enabling them to provide mobile wallet services to its subscribers, as reported by the Economic Times. Aircel was the sixth operator to receive the wallet license after Bharti Airtel, Vodafone India, Reliance Jio, Idea Cellular and Tata DOCOMO.