Our Digital Payments coverage is brought you by Chillr: India’s 1st multi-Bank instant mobile payment app enabling fund transfers to anyone in your phonebook.
Multi-bank peer-to-peer payments app Chillr* has completed raising a $7 million Series A funding round from Sequoia Capital, Blume Ventures, Uniqorn Ventures and others. Chillr had announced the Series A funding round which was led by Sequoia Capital in October. We’ve written to Chillr for more details and will update once we hear from them.
Backwater Technologies, which owns Chillr, will use a part of the funds to acquire customers and merchants and the rest of the money to strengthen its technology and team.
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.
Chillr claims that 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.
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.
Other players in the peer-to-peer money transfer space
– ICICI Bank introduced a digital payments product for mobiles, which integrates a digital wallet, a physical prepaid card and a basic savings bank account called Pockets in February. The wallet allows users to send money to any e-mail id, mobile number , friends on Facebook and even bank accounts directly.
– Kotak Mahindra Bank launched KayPay, a bank agnostic payment product for Facebook users to send money to each other.
– Axis Bank’s Lime application which was launched in September can also handle peer-to-peer money transfers.
*Disclosure: Chillr is an advertiser with MediaNama