Update: In the press statement released by the company, it said, the funds will be utilized for developing products in the payment and loan categories, scaling annual transactions to Rs 1,500 crores and disbursing loans to merchants upwards of Rs 150 crores. the company claimed it has a growth rate of 30 to 40 % month on month.
Payments startup Ftcash has raised undisclosed amount venture capital fund 500 Startups and existing investor IvyCap Ventures in a pre-series-A round funding.The company plans to use the funds raised for product development, merchant acquisition and hiring as indicated by EtTech. The startup plans to scale up operations in Mumbai, Pune, Surat and Jaipur and reach the mark of 1500 crore worth annual transactions.
The company gives customers online payment options through credit card, debit card, net banking, mobile wallets and PayPal. The company’s website claims that payments can be collected through Whatsapp, SMS, Email and Facebook. In March last year, the company had raised $1 million from Ivycap Ventures, Tracxn Labs and Singapore Angels.
The company started lending to merchants in March this year and tied up with 10 NBFC’s for this. The company in Mach claimed it had already lent Rs 1500 crore to 100 merchants as a pilot. In September last year, the company started UPI payments after tieing up with ICICI Bank. It was also selected by PayPal’s incubator progamme for fintech startups in November 2015. ftcash was launched in mid-June 2015 by Sanjeev Chandak, Deepak Kothari and Vaibhav Lodha.
Fintech and especially the online payment space has seen a lot of activity in the last quarter. Companies such as Razorpay and Ezetap had started UPI gateways last year. There is also Instamojo which allows customers to pay through cards, netbanking and UPI.
In the lending space, Ftcash, competes with companies such as Lendingkart and Capital Float. LendingKart raised $32million in June last year in a series B round of funding led by Bertelsmann India Investments (BII) and Darrin Capital Management along with existing investors.
Around the same time, Capital Float raised $25 million in a series B round of funding led by Creation Investments Capital Management, LLC, with significant participation from existing investors SAIF Partners, Sequoia India, and Aspada.