Paytm has acquired Bengaluru based smart-savings management startup ‘Balance.Tech’ for an undisclosed sum, the company announced in a statement. As part of the acquisition, Balance.Tech’s six-member team will join Paytm’s product and design departments, the statement added.
With the acquisition, the company said that it hopes to enhance Paytm’s user and merchant interfaces. Madhur Deora, CFO, Paytm, said that the new team will help the company “create customised and intuitive user experiences”. On the other hand, Ankit Kumar, CEO and Co-Founder Balance.Tech, said the startup had been building automated products to help users save and invest their money easily. “We look forward to bring in computational intelligence, unique design and proprietary algorithms with Balance to help Paytm users accomplish more with their money,” he said.
Balance Tech was founded in 2016 by Ankit Kumar and Abhishek Malik. It invests users’ money in mutual funds that have no lock-in period and offer returns of up to 8.7% a year. In May 2017, the fintech statup had raised Rs 1.5 crore (around $233,000) from Rainmatter, a report by VCCircle said.
Paytm’s recent moves
Recently, the company announced the launch a new digital payments service in Japan in collaboration with SoftBank. This will be Paytm’s second international market after Canada, where the company has a bill payments application. Last week, Paytm Mall also announced the appointment of four new executives its senior management team, including one to launch and expand an international business.
Prior to that, Paytm launched a Forex service, for currency exchange of 20 top international currencies on its platform. The development came shortly after the company announced that it has achieved an annual run rate of 5 billion transactions and $50 billion in Gross Transaction Value (GTV). Last month, Paytm Mall, the e-commerce arm of Paytm raised $200 million from SoftBank in a new round of funding.
In June, Paytm’s parent firm One97 Communications Ltd acquired Delhi-based technology startup Cube26 for an undisclosed amount.
The news also comes days after the Reserve Bank of India (RBI) reportedly bared Paytm Payments Bank to not add more users on its platform. Furthermore, the central bank even asked Paytm to sack Paytm Payments Bank CEO Renu Satti due to her “inability to lead the banking services” at the company, the report says.