Mswipe Technologies Pvt. Ltd, which makes point of sale (PoS) machines for merchants, raised $10 million in funding from B Capital Group and DSG Consumer Partners, closing its Series D round, the company said on Wednesday.
Mswipe announced the Series D round in June, when it initially raised $31 million from Ratan Tata’s UC-RNT Fund, Matrix Partners India and Falcon Edge Capital. Till date, the company has raised $65 million in funding from its investors.
Its latest investor B Capital is a global technology fund which focuses on industry vertical such as fintech, healthcare, industrial logistics, and consumer companies. Eduardo Saverin, partner at B Capital, will join Mswipe’s board, the company said in a statement.
The start-up will use the fresh capital to expand its payment acceptance network through tie-ups with retail merchants for card and digital payments, and to strengthen its product development capability.
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.
It has deployed a network of 280,000 PoS terminals in India across 650 towns and cities in India since its inception in 2011. It also claims to have a 2,000 people strong pan-India sales and support network.
“At Mswipe, we are at the forefront of the payments revolution by powering acceptance infrastructure at the merchants’ end, enabling them to accept card and digital payments in a hassle-free manner. B Capital’s expertise in the sector and its exceptional network in Asia will be an important ingredient as we shift orbit and execute our next phase of growth,” Manish Patel, chief executive of Mswipe, said in a statement.
According to Mswipe, the Indian market has about 14 million merchants with low PoS penetration. Seeing this market opportunity, the company recently launched a proprietary PoS machine named Wisepad G2TM , which supports contact-less payment methods like Near Field Communication (NFC).
After the announcement of demonetization in November last year, several payment service providers have stepped up their operations. Mswipe’s competitor Ezetap, which also makes low-price mPoS devices, raised $16 million from JS Capital to fund its growth.
Flipkart-owned digital wallet PhonePe also entered the mPoS segment recently with a Bluetooth-enabled payment acceptance device targeted at kirana stores, petrol pumps, and food chains.