Ecommerce marketplace ShopClues has acquired Bangalore-based mobile payments company Momoe for an undisclosed amount. The acquisition will allow ShopClues to upgrade its payment network for merchants and while it looks to expand into the hyperlocal commerce business. ShopClues will now accept payments directly from users to merchants using Momoe, as both users and sellers will have access to the payments platform.
With this acquisition, ShopClues follows what its competitors had done before:
In April Flipkart had bought payments company PhonePe. This was Flipkart’s third acquisition in the payments space. In September 2015, it acquired majority stake for Rs 45.4 crore in FX Mart, which holds a prepaid payments instrument license from RBI.
Flipkart had acquired 65.71% stake in mobile payments platform ngpay in December 2014, which was set up in Singapore. While, in April 2015, Snapdeal had acquired online recharge and couponing site Freecharge for about $450 million (Rs 2,800 crore), which made it the biggest such deal in the Indian consumer internet industry at that time.
Momoe was founded in April 2014, by Utkarsh Biradar, Karthik Vaidyanathan, Ganesh Balakrishnan, Neelesh Bam and Aiman Ashraf , the app offers loyalty rewards, event tickets and personalized offers to users. It makes a profit via a cut from merchants for each transactions. In February last year, the company had raised $1.2 million in a round of funding led by IDG Ventures India and Jungle Ventures, with participation from India Quotient, At that time, the company said it will use the funds to expand its team as well as to reach 500 merchants outlets.
Momoe currently offers an app for iOS and Android, which enables people to make payments using their smartphone when eating out, shopping or commuting. The solution worked with over 25 restaurants in Bangalore at the time of funding, including SouthIndies, Opus, Prost, Mezzeh and Brewsky among others.
ShopClues Funding: In January, Shopclues had raised $100 million in a series E round of funding led by sovereign wealth fund GIC, and participation from existing investors Tiger Global and Nexus Venture Partners. With this funding, ShopClues was valued at $1.1 billion. At that time, it claimed to have over 5 crore products, attracting more than 190 million visits a month. The company claims to have over 4 lakh registered SME merchants.