India: PoS machine-maker Mswipe raises $32m from existing investors

Mswipe
Photo: Mswipe's Facebook page

Mswipe Technologies Pvt. Ltd, which makes point of sale (PoS) machines for merchants, has raised around Rs 220 crore ($31.6 million) from its existing investors including US-based hedge fund Falcon Edge and Eduardo Saverin-promoted B Capital Asia.

According to regulatory filings quoted by a report in The Economic Times, the round also saw participation from venture capital firms Epiq Capital and DSG Consumer Partners.

MSwipe had last closed its Series D round of funding in 2017 with $10 million from B Capital Group and DSG Consumer Partners. The company had announced the Series D round in June 2017, when it initially raised $31 million from Ratan Tata’s UC-RNT Fund, Matrix Partners India and Falcon Edge Capital.

The filing to the Registrar of Companies showed that B Capital Asia and Epiq Capital invested around Rs 70 crore while Falcon Edge put in Rs 57 crore and DSG Consumer Partners invested Rs 21 crore.

Mswipe is an independent merchant acquirer and payment services provider based out of Mumbai. It makes mobile PoS (mPOS) devices for merchants, a cheaper variety of the more bulky PoS device conventionally provided by banks.

Apart from mPoS devices, the company also has a payment gateway for processing payments online and an automated payment settlement system for merchants.

According to media reports, Mswipe plans to use the Series E funds to strengthen and expand its operations financing the working capital and other business operation requirements.

According to a TechSci Research report, the Indian POS terminals market is projected to grow at a CAGR of over 11 per cent during 2017 – 2022. Post demonetisation, the market of POS terminals witnessed a surge as the cash crunch led by the ban on currency notes of Rs 500 and Rs 1,000 resulted in increasing adoption of several alternate modes of payment such as debit and credit cards, it noted.

In India, Mswipe competes with the like of Sequoia Capital-backed Ezetap, and Actis Capital-backed Pine Labs, which is said to be in advanced talks to close a funding round of around $75 million from existing investors including Temasek and PayPal.

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