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Airpay, a Mumbai-based company in the B2B payments space, has raised $3.6 million in a Series A round of funding led by Kalaari Capital and investors Rakesh and Rajesh Jhunjhunwala, reports Mint. Airpay offers online payment gateway solutions for e-commerce and retail markets in India. It also offers segment-wise transactions reporting, single window transaction settlement, loyalty management programmes, and a single process for online and offline transactions.
Airpay allows enterprises to accept payments from their clients across various of touch points including web, mobile, call centre, IVR, email, SMS and face-to-face and through 100+ ﬁnancial instruments.
The company was started in 2012 by Amit Kapoor, Kunal Jhunjhunwala and Rohan Deshpande, all who worked together at online music provider Hungama.
The company plans to invest the new capital in technology development and building a larger sales and distribution team to increase clients, which include companies in hospitality, education, banking and retail.
B2B payments have seen a renewed interest lately. Last month, Paymate surrendered its wallet licence to the Reserve Bank of India and opted to focus on its B2B payments business. “We have been business-to-business (B2B) payments focused processing over $2 billion annualized with sustainable unit economics and have no requirements for a wallet,” Paymate CEO Ajay Adiseshann said at the time.
Paymate pivoted from a business-to-consumer (B2C) business to a business-to-business model (B2B) in November 2014. At the time, it had mentioned that was targeting small and medium business operating in the travel segment.
Meanwhile, last year, PayPal India launched PayPal.me, a B2B digital peer-to-peer payment service aimed at freelancers and small businesses selling products and services across borders. Merchants can set their own profiles and get a personalized URL for their business with their existing PayPal accounts. This URL will help merchants to call for a payment without giving out their bank account details and IFSC or SWIFT code. The URL can be shared through any medium and can be used by individuals without any web infrastructure. As part of its launch, the company has cut its foreign exchange rates by 40% by one percentage points