IFC proposes to invest $8.1m in Mahindra-backed mobile payments switch TerraPay

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International Finance Corporation (IFC), part of the World Bank Group, has proposed to invest up to $8.1 million in mobile payments switch TerraPay, a B2B company incubated by Indian conglomerate Mahindra Group-led Comviva.

TerraPay is a real-time, low-value payments network, which connects all financial instruments globally. The company enables interoperability of mobile wallets in international, regional and domestic markets. It is registered in Amsterdam, Netherlands and has operations in Africa and Asia.

IFC’s investment will be part of a transaction by an investment consortium to acquire the company and fund its expansion, it said in a disclosure. It would subscribe to preferred Series A shares of TerraPay in exchange for the investment.

The investment will allow TerraPay to execute on its strategy to scale operations as a hub enabling interoperable, real-time, cross-border transactions between money transfer operators (MTOs) and mobile money operators, the disclosure said.

It will also contribute to promoting systemic changes in the international remittances market in Sub-Saharan Africa, by lowering barriers to entrants for new MTOs, promoting price reduction through competition and by enabling a lower-cost model for remittance transfers directly into mobile money and bank accounts, it added.

Founded in 2014, TerraPay over the years has been expanding its reach globally.

In 2016, TerraPay acquired UK-based Pay2Global with an aim to expand its footprint in the European market. Last year, TerraPay teamed up with Western Union to help the latter expand account payout network in Europe, Africa, Latin America, and Asia.

It has also partnered with private sector lender Yes Bank to enable real-time money transfer to bank accounts in India. In February, it partnered with Pan Asia Bank to make instant cross-border money transfer to all bank accounts in Sri Lanka.

Meanwhile, Comviva was acquired by Tech Mahindra from Bharti Group in 2012. Tech Mahindra is part of the $21-billion Mahindra Group. Other investors in TerraPay include Prime Ventures, Partech, and its employees.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.