Digital payments company and point-of-sale terminal provider Mswipe has raised $31 million in a Series D round of funding led by UC-RNT fund, a joint venture between Ratan Tata’s RNT Associates and the University of California. Existing investors Matrix Partners India, Falcon Edge Capital, and DSG Consumer Partners also participated in the round.

With the round of funding, Axis Bank, an early investor which owns 8% in the company, has gotten a complete exit, as indicated by this Economic Times report.

Its  last funding round was in July 2015, where it raised Rs160 crore in a Series C round from investors such as Falcon Edge Capital, Ola Cabs and Meru Capital. Mswipe had earlier raised an undisclosed amount in a Series B round of investment from investors Matrix Partners and Axis Bank in January 2014. The company had also raised an undisclosed amount from Matrix Partners in January 2013, with Axis Bank’s participation.

The freshly raised funds will be used to expand its network of merchants accepting digital payments in the country. Currently, Mswipe has a network of 2,46,000 terminals spread across 550 cities.”The annualized value of total transactions enabled by Mswipe across its network stands at Rs. 9,560 crores,” the company said in a statement. It added that 80% of its merchant base is comprised SME merchants, typically supported by 1-30 employees and that they have a monthly turnover of Rs 1 lakh to Rs 5 lakh.

Mswipe also said that it is developing Android-based smart POS that will offer merchants capabilities like GST compliant billing and inventory management with integrated and seamless payment acceptance, on the same device. “Merchants can further develop customized Android applications and easily integrate Mswipe’s payment platform with such apps using these smart POS terminals,” CEO Manish Patel added in the statement.

Partnerships

Mswipe has been signing up with other payment companies and diversifying acceptance of payment methods other than cards and integrated BharatQR and UPI as well.

Meanwhile, employee benefits services provider Sodexo signed a partnership Mswipe in May. Through the deal, Sodexo will be expanding its footprint and employees can use Sodexo’s Meal Card at select merchants like grocery stores, restaurants, cafes and food delivery services. Patel said that more than 30,000 merchants will be able to use Sodexo’s meal card. The partnership will also have a revenue sharing agreement where Mswipe will earn a portion when a Meal Card is swiped at its merchants.

In the same month, Mswipe also enabled Samsung Pay across all its terminals to enable contactless NFC “tap and go” payments.

It also acquired PayU India’s offline POS business. As part of the deal, Mswipe merchants will be able to offer Internet payment services offered by PayU India, and PayU will push Mswipe to its merchants for POS services related requirements.