Point-of-sale venture Mswipe Technologies has raised a $31 million round of funding led by UCRNT Fund, a joint investment vehicle sponsored by Tata Sons Chairman Emeritus Ratan Tata and the University of California.
Existing investors Matrix Partners India, Falcon Edge Capital, and DSG Consumer Partners participated in the Series D round.
According to news reports, the funding round is likely to have valued the Mumbai-based firm at around $200 million. It has so far raised around $56 million in external funding.
The company will use the funds to develop the largest network of merchants accepting digital payments in the country, Mswipe said in a release.
The last fund-raising at Mswipe was in July 2015, when it raised Rs160 crore in a Series C round from new investors such as Falcon Edge Capital, Ola Cabs and Meru Capital. Existing investors Matrix Partners India, Axis Bank Ltd and DSG Consumer Partners also participated in the round.
The transaction has reportedly provided a complete exit to Axis Bank, an early investor in Mswipe, which sold its 8 per cent stake in the company for around $12 million.
Avendus was a exclusive financial adviser to Mswipe for this fund raise.
Mswipe was founded in 2012 by Manish Patel who previously co-founded an alcoholic beverages distribution company called Milestone Merchandise. The company provides a mobile payment solution with a card reader, which can be attached to any mobile phone’s audio (headset) jack. It also company also provides similar card payment solutions for smartphones.
It works closely with smaller banks such as Corporation Bank, RBL Bank Ltd, Shamrao Vithal Co-op. Bank and large banks such as Axis Bank.
The company also has presence in the Middle East, the US and Southeast Asia through partnerships.
Its clients include small and medium enterprises. In the payments services market, Mswipe competes with companies such as Ezetap and Paynear.
The company claimed to have around 240,000 terminals deployed across more than 500 locations in the country , and claims to have recorded annual transactions of about Rs.8,850 crore.