Mobile payments services provider Mswipe Technologies Pvt. Ltd has raised the amount of $21 Million of Series D funding from Chinese VC firm Fosun. Existing investors Falcon Edge Capital and DSG Consumer Partners have also participated in the funding round.
Previously in July 2015, Mswipe have raised $25 Million of Series C funding from Axis Bank, DSG Consumer partners, Flacon Capital, Matrix Partners India and Meru Capital.
The Mumbai-Based firm was founded in March 2011 by Manish Patel. Mswipe secure mobile POS solution that works with Smartphone’s, tablets, computers, and links to the bank account. Their mobile swiper is the only solution which enables feature phones to be used as a mobile POS.
According to companies CEO, Manish Patel, “The company has witnessed a huge growth in the sales of these devices post demonetization, with card transactions growing rapidly.”
The fundraising comes at a time when the number of cashless transactions in the country has increased after Prime Minister Narendra Modi announced the withdrawal of Rs500 and Rs1,000 notes on 8 November. These two currency notes formed the bulk of the currency bills in circulation in the country.
According to Reserve Bank of India data, in December, Credit and debit card transactions at PoS terminals saw a 106% year-on-year growth.
A report from The Hindu say – AP Hota, Managing Director and CEO of National Payments Corporation of India, “The Corporation is targeting to nearly treble the number of PoS machines at merchant outlets to 5.5 million over the next six months, from present 2.4 million.”
Mswipe’s fund-raising plans come at a time when several other PoS providers, such as ItzCash, MobiSwipe and Ezetap, are also aggressively expanding their services.
The fresh funds will be used in fueling the expansion into smaller cities and towns, where ATMs are still scarce and connectivity is a major issue for wallets to run. Read more about Indian Startup Ecosystem.