MoneyOnMobile (MOM) partnered with Maharashtra State Road Transport Corporation (MSRTC), to bus ticket bookings for state or inter-state travel from MoneyOnMobile’s retail outlets. The company claims to have 350,000 retail locations throughout India, but specific number for Maharashtra is unclear.

The app allows users to pay for goods and services, or transfer funds using SMS. The offline digital wallet also enables purchase of tickets and bill payment: consumers deposit cash with one of its retail agents, which gets deposited into their virtual wallet. MOM retail merchants also serve as mini-ATMs, as banked customers can withdraw cash from their bank account at the store locations.

Changing business model

MOM is in the middle of retooling its business model to focus on transactions with higher margins. The growth in company’s revenue from money transfer has been on a decline. While month-on-month increase in July 2017 was 42%, it fell to 21% in August, 17% in September, 9% in October and 1% in November. The revenue from money transfers picked up in December, touching 10%, but fell back the next month, registering a 10% dip.

The scenario is worse for MOM’s ATM segment, which registered a negative 71% month-on-month decline in revenue in January 2018, while revenues from mobile/TV top-ups posted a 2% growth in January compared to 6% in December.

Recently, MOM  raised $12.6 million over two rounds of funding. Of this, $7.6 million was raised through Series F preferred stock, and $5 million was raised through Series H convertible shares. The company also underwent two debt restructurings (moving debt to equity) worth $5 million, its chairman and CEO Harold Montgomery said while announcing quarterly earnings in December 31, 2017 (Q3FY18). He added that the company will be using the funds “to diversify our product portfolio and broaden our geographic reach in India.”