Mswipe Raises $ 10 million From B Capital

Mswipe Raises $ 10 million From B Capital

DSG Consumer B Capital, one of the co-founders of Facebook has recently stepped into India where the firm has invested $10M in Mswipe, an Indian payment startup

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DSG Consumer B Capital, one of the co-founders of Facebook has recently stepped into India where the firm has invested $10M for the growth and development of an India-based payment startup i.e. Mswipe.

Note, this is the very first investment deal that B Capital has made in India. They have an estimated fund size of $180 million. The firm has branch offices both in Singapore and California. B Capital Group is well-known for investing huge amounts of money in the next-gen groundbreaking technology companies. The group mainly focuses on pioneering B2C and B2B start-ups which deem to have potential to scale across the international stage. This time, the firm has decided to invest in a Mumbai-based payment startup along with DSG Consumer Partners. Originally pegged at an amount of $31 million, this latest deal extends to over $40 million.

Mswipe, an Indian payment startup was founded in the year of 2011. So far, they have raised around $65 million from their investors. The company features to be the largest mPOS based payment enabler in India. They provide easy to use mPOS or mobile point of sale solutions. The company has a mission to widen its availability of financial services in the Indian market. Instead of adopting newer technologies like consumer wallets, the startup has stayed more focused on implementing mobile point-of-sale devices. Their mPOS solutions are portable, compact, and wireless. These devices accept all major credit and debit card transactions, such as MasterCard, VISA, and RuPay.
Their POS devices are both lightweight and affordable, as compared to the traditional service providers. Their mPOS solutions cut out middlemen in order to directly offer robust customer services to minimize complication and cost. According to Manish Patel (the honorary founder and CEO of Mswipe), his organization focuses on rendering reliable services that avoid the traditional or conventional telephony network. Initially, their technology was meant to be useful for mid-sized retailers and under-represented SMEs. But, the technology can now be targeted to larger customers to fulfill their needs.
He further explained that their mPOS devices can perfectly work on a standard 2G connection. Manish Patel has mentioned that his firm has more than 290,000 merchants across India who are using Mswipe’s POS devices. On top of that, a total of 15,000-18,000 new signups are coming on each month. These figures (when summed up) will make their company as the 5th largest in the underlying industry. Plus, the CEO believes that this firm will certainly take the 4th place within the upcoming six months.
MobiKwik, Paytm, and Ezetap have already accrued millions of consumers through their mobile wallet solutions. But Patel believes that India’s 900 million cards (both credit and debit) are more viable and better options for financial inclusion. But these cards are underserved because there is a lack of acceptance from the side of retailers.
When Mswipe started their business, the numbers of POS terminals (in India) were extremely low. The count was approximately 800,000 (at that time). Today, there are more than 2.5 million POS terminals across India. However, Patel says that more progress is still needed. He has even mentioned that Turkey has more POS terminals than India with a population of eighty million.
These POS terminals were earlier using some old technologies which needed to be re-invented. That’s why the startup focused on revolutionizing the technology behind POS devices while making it fast, secure, and reliable. The founder of Mswipe acknowledged that he really liked Paytm’s mobile wallet solutions. He has appreciated the progress that Paytm has made so far. His firm has watched with extreme interest all froths on mobile payments. But in a country like India, the primary store of money is the bank account where consumers have multiple ways to access their corresponding accounts. But when the money is stored in the mobile wallets or digital wallets, if it needs to be moved back to your bank account, you will need to bear additional transactional fees (which is now covered by the firms like Paytm).
He explained that a total of 200 million of Indian smartphone users are not always online for 24*7. Hence, relying on an online mobile app for financial transactions or payments is totally unrealistic for the majority of this country.
That being said, Mswipe POS terminals can accept payments from digital wallets, such as Samsung Pay, UPI, and Google Tez etc. UPI is the government-backed payment protocol solution in India. Apart from the SME financing options, Mswipe offers various inventory management and basic business services too.
Patel hopes that this latest deal with B Capital will help his firm to make more progress in the underlying industry.