Singapore-based payments platform Nium has entered an agreement to acquire scam-hit Wirecard’s operations in India, according to a company statement.
The size of the transaction was not disclosed but involves the takeover of Wirecard Forex India’s foreign currency exchange, pre-paid card and remittance service provider. All of its 190 employees will join Nium once the deal is finalised.
According to Nium, Wirecard Forex has 23 branch locations in India, including major cities like New Delhi, Mumbai, Kolkata, Chennai, Gurgaon, Hyderabad, Pune, and Bengaluru.
The deal also marks Nium’s entry into the Indian market, according to an Economic Times report.
“We’re seeing an accelerated move to digital payments as companies modernise their infrastructure to capitalise on the post-COVID economic recovery. More companies are turning to our global payments stack to embed financial services quickly,” said Prajit Nanu, Nium’s co-founder and CEO.
“This acquisition broadens our licensing portfolio, extends the suite of digital payments services we can offer in India, and provides us with a physical footprint to provide more support in metro areas,” Nanu added in the statement.
This is Nium’s second acquisition this year, following an announcement to buy London-backed B2B payments company Ixaris just last month. Ixaris provides financial transaction services to businesses such as airlines and online travel agents (OTAs), enabling them to reduce surcharges, earn rebates, flatten FX fees, and streamline reconciliation. The Ixaris transaction is expected to close during the third quarter of 2021.
Nium claims to hold the broadest licensing portfolio for any independent payments fintech. It issues about 30 million physical and virtual cards today and is licensed in 11 jurisdictions, including direct card issuing capabilities in 24 countries and 40 currencies.
Nium’s website adds that the firm can conduct real-time transactions across 65 markets in 63 global currencies. Its clients range widely across sectors such as small and medium enterprises (SMEs), financial institutions, fintech firms, e-commerce platforms and travel companies.
In April, DealStreetAsia had reported that Nium raised $21 million from Temasek Holdings involving a mix of primary and secondary trades. The Singapore-based firm has raised a total of $93 million to date from investors such as Vertex Growth Fund, Visa, Atinum Investment, BRI Ventures, MDI Ventures, Beacon Venture Capital and Global Founders Capital.
Prajit Nanu, Nium’s chief executive and co-founder, is understood to be relocating to San Francisco in the coming weeks, which will see the firm building its presence further in the US market. The firm has previously shared that it aims to eventually list on the New York Stock Exchange (NYSE).