Exclusive: BharatPe is raising $75 Mn led by Insight Partners at 6X valuation

Fintech is hot in India and investors are continuously chasing deals as they don’t want to miss on the opportunity of making a killing out of the fledgling segment. While Paytm and PhonePe have been negotiating fresh rounds with Alibaba and Tencent-Tiger Global respectively, QR code-based payment app BharatPe is raising at least $75 million in a fresh round.

According to two Entrackr’s sources, the firm has finalized $75 million round led by Insight Partners. “Existing investors along with a couple of US-based hedge funds are also participating in the Series B round,” said aforementioned sources.

Sources requested anonymity as they aren’t authorized to speak to the media.

The Series B round is coming just after three months of raising $15.5 million from Sequoia Capital, Beenext and Insight Partners. “Insight had invested only $5 million in the Series A round. However, in this round, the global venture capital firm is pouring in $35-38 million. Sequoia is participating in the round on a pro-rata basis,” added sources.

Importantly, BharatPe is trying to take the round up to $100 million. “It’s in advanced talk to raise additional $25 million but nothing has materialized beyond $75 million at the moment,” emphasized sources.

It’s worth noting that BharatPe was valued anywhere between $60 to $65 million in Series A round. But its valuation is set to soar 5 to 6X. “The firm is valued about $330 to 350 million in the fresh Series B round,” mentioned sources.

This is eye-popping valuation in a very short duration – only three months.

Besides backing from institutional investors, BharatPe also raised capital from bluechip angels including American Express’ top executive Sanjay Rishi, PayU co-founder Nitin Gupta, PineLabs CTO Nipun Mehra, ex Paytm and Tokopedia VP Amit Lakhotia, and Hero group Akshay Munjal.

“The deal is likely to be announced in the next couple of weeks,” outlined one of the aforementioned sources. Queries sent to Insight Partners and Sequoia Capital did not elicit an immediate response while BharatPe declined to comment on the matter.

Last we heard, the company claimed to have about 9 lakh offline merchants who drive over 350K transactions on a daily basis via its platform. Apart from powering payments via interoperable UPI QR codes, it recently began disbursing loans to the merchant based on transaction histories.

BharatPe has partnered Apollo Finvest to offer loans with ticket sizes between the range of Rs 10,000 to Rs 1 lakh at a lucrative interest rate of 1.67%.

BharatPe has emerged as a strong player in the UPI segment in the past couple of years. The UPI ecosystem is largely being fought by deep-pocketed players such as Paytm, PhonePe and Google Pay. By focusing on QR code payments meant to be used across offline merchants, the firm has scaled up really fast.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source : https://entrackr.com/2019/06/exclusive-bharatpe-raise-75-mn-insight-partners/

NPCI to credit online payment to e-comm firms only after product delivery

Payment transactions through Unified Payments Interface (UPI) have witnessed decline for the last two months. After hitting a record high to 799 million transactions in March, UPI witnessed 781 million and 733 million transactions in April and May respectively.

The recent downfall has worried the National Payments Corporation of India (NPCI), which developed an instant real-time payment system three years ago.

NPCI, to drive its growth, is planning to bring non-adapting online users on UPI platform by creating an escrow-like mechanism with e-tailers and marketplaces.

It is reportedly working with Amazon and Flipkart. Under the mechanism, e-tailers will receive payment only after delivery is confirmed by the buyers. The payment at first will be kept in the escrow-like account by UPI. Once the delivery is confirmed it will be credited in e-tailers accounts.

NPCI is planning to launch this mechanism within one and a half months, as per a TOI report.

However, despite a slowdown in volume, the UPI value of transactions has not been affected. In April, as per NPCI data transactions worth Rs 1.53 lakh crore were made, up 7.3% from April.

The move is largely aimed at roping in new online buyers.

As per industry observers, NPCI-move will help drive more adoption of UPI payment. Besides, NPCI is also planning to push for retail investment in IPOs via UPI

At present, about 143 banks are live on UPI.

Among non-banking players like Google Pay, Paytm and PhonePe are top three firms, who have continuously been witnessing reshuffle in terms of the transaction volume as well as value.

Though, in the last three months, the Google-owned payment firm outran its rivals

As per latest figure, Google-owned payments app Google Pay emerged as the largest contributor of NPCI-owned UPI payment, recording 240 million transactions amounting to Rs 55,000 crore in May whereas PhonePe and Paytm registered 230 and 200 million transactions worth Rs 44,000 crore and Rs 38,200 crore respectively.

Google Pay contributed over 32% in overall 733 million UPI transactions that took place last month

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source : https://entrackr.com/2019/06/npci-e-tailers-after-product-delivery/

Paytm claims 50% market share in payment gateway transactions; 5X greater than PayU

Vijay Shekhar Sharma-led digital payment firm Paytm has claimed a leadership position in payment gateways with processing over 400 million transactions for merchants every month.

Noida-based payment firm clocked higher gross volume and value transactions than its biggest rivals PayU and Razorpay. Paytm, without disclosing the value of the transactions, processed five-time more transactions than its nearest competitor, the company said in a release.

At present, Nasper-backed PayU processes reportedly around 100-120 million transactions whereas Razorpay has not made its number public. Though, Razorpay claims to add new merchants at the rate of almost 20% per month and witnessing a 15% growth in gross payments.

In April, Paytm did transactions worth Rs 20,000 crore in April whereas PayU and Razorpay clocked around Rs 10,000 crore and Rs 3,000 crore in last month, said a TOI report citing industry data.

Paytm, in the last couple of years, has pushed aggressively for payment gateways business with e-commerce firms. It has garnered a major share of digital transactions for brands including Uber, Zomato, OYO, Dominos, IRCTC, Jio, Club Factory, and Big Basket among others.

Transportation, food delivery and gaming emerged as the fastest growing categories for payment gateway transactions, mentioned the company’s press statement. Paytm offers a gamut of payment solutions from instant plug-and-play offerings to deep platform integrations.

In last one year, Paytm saw 3X growth on third-party apps and websites.

We are committed to delivering more innovative offerings tailored to meet the requirement of the ever-evolving payment to further consolidate our leadership, said Kiran Vasireddy, COO – Paytm.

Recently, Entrakr had exclusively reported that Vasireddy is leaving the payments firm along with former Paytm Mall COO – Amit Sinha.

Softbank and Alibaba backed firm also claimed high success rates for almost all payment method including UPI and RuPay cards. It claimed to drive significant checkout volume with 150 million saved cards and bank accounts in its system.

In February, the RBI has proposed to regulate payment gateway service to make them more transparent and accountable.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source: https://entrackr.com/2019/05/paytm-5x-payment-gateway-transactions-payu/

Google Pay continues lead over Paytm and PhonePe in UPI transaction value

Google’s UPI-based payment app Google Pay has witnessed a remarkable growth ever since its launch in 2017 in India. In about 20 months, it has achieved a stellar growth giving its main rivals PhonePe and Paytm a run for their money.

According to transaction data of April, Google Pay did transactions worth Rs 49,700 crore way more than its competitors PhonePe and Paytm. PhonePe was at second number with a transaction value of Rs 42,610 crore whereas Paytm registered transactions worth Rs 35,500 crore.

All three together accounted for about 90% of the Rs 1.42 lakh crore worth transactionsreported last month. Govt-backed BHIM accounted for merely 15 million transactions worth Rs 6,600 crore during the same period.

This is almost 14% rise in Google Pay transactions in comparison to transactions value in March, as per Bloomberg report.

Interestingly, Google Pay recorded UPI transactions worth Rs 43,000-Rs 45,000 crore in March. Both PhonePe and Paytm are said to have done transactions worth Rs 31,000-32,000 crore each.

However, in terms of volume of transaction, PhonePe leads with 258 million transactions. Google Pay and Paytm are estimated to do transaction between 230 million to 240 million.

As per the last figure provided by Google Pay in March, it has about the user base of 45 million. PhonePe and Paytm have not revealed their exact user base. Earlier, in a tweet, Paytm founder Vijay Shekhar Sharma said there are about 94 million KYC wallets and 371 million total users on its platform.

Meanwhile, the actual numbers of active users and transactions volume are still unknown.

As per observers in the payment space, Google Pay chat enabled payment service is easy to use. And its promotional and cashback offerings have helped it attract more users in very less time.

Currently, Google Pay is accepted at over 2,000 online merchants such as foodtech, travel, movie or event tickets, including trading, and investments.

It has also been testing new products in wealth management space and collaborated with Pine Labs to boost its offline transaction.

As per Sensor Tower data, Google Pay had claimed a top slot in terms of downloads recorded by fintech apps globally. It was downloaded over 327 million times, with over 6X lead from second most downloaded fintech app.

In the last few months, global payer like Amazon has also been betting big to get major share in India payment space. With reports of WhatsApp Pay to be launched in about in next two months, the payment space in the country is poised to witness a dynamic change.

Who will be at forefront or winners in this payment battle, is a matter worth observing.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source: https://entrackr.com/2019/05/google-pay-lead-phonepe-paytm/

PIL filed against Paytm Payments Bank for alleged illegal operations of Post Paid Wallet

A Public Interest Litigation (PIL) has been filed against the Paytm Payments Bank for operating a post paid credit facility allegedly in contravention of law which regulates such facility.

In response to the PIL, the bench, headed by Chief Justice Rajendra Menon and Justice Brijesh Sethi, has issued a notice to the Reserve Bank of India (RBI) and Paytm Payments Banks Limited (PPBL) asking them to clear their stand on the matter. The next date of hearing is on  September 3, as per an agency report.

The petition has been filed by financial economist Abhijit Mishra. He has alleged that Paytm Payments Bank Limited is operating post paid wallets in defiance of Operating Guidelines for Payments and Guidelines for Licensing of Payments Banks as issued by the Reserve Bank of India.

The guidelines do not permit lending facilities to customers by such entities without prior approval of the Central bank, he contended.

Paytm ‘Post Paid’ is a credit facility being offered by the company to its customers. As part of this service, customers can recharge mobiles, book movie and travel tickets and also shop on Paytm and pay the following month at zero cost or interest.  The facility is being offered to customers subject to verification of their creditworthiness as per the company’s assessment. It is therefore open only for “eligible” customers.

The PIL further seeks punitive action by the RBI against the directors, management and officers of the PPB for malpractice and violation of relevant banking acts.

It also claimed that Paytm Bank by the means of its post paid service has provided un-monitored and unauthorized access to the personal information such as Aadhaar, PAN, transactions etc. of its customers to unauthorized third party, thereby clearly violating Article 21 of the Indian Constitution and other relevant banking acts.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

PhonePe seeks $8 billion value with $1 billion fund-raise

After Flipkart’s board gave approval to hive off PhonePe, paving the way for a solo fund-raise, the payments platform is in talks to raise about $1 billion from marquee investors like China’s Tencent and Tiger Global, three people aware of the development said.

Tencent and Tiger Global had backed Flipkart, which acquired PhonePe three years ago. However, the outcome of the talks would depend on the valuation at which these investors are willing to put money in the firm. PhonePe is looking at a valuation of at least $7-8 billion and will not take transaction forward at a lower level.

“Valuation can make or break these talks. PhonePe is in discussions with Tencent as it could leverage a strategic investor willing to back it for the long-term, especially to fight well capitalised Paytm,” a person aware of the discussions said. This person added it could take another two-three months for the investments talks to close formally.

For Walmart, which would remain a large shareholder in the case of new investors coming on-board, PhonePe’s valuation will be crucial since it bought a 77% stake in Flipkart for $16 billion, at a steep valuation of $22 billion. “Board will have to approve PhonePe’s valuation for the independent fund-raise,” the person mentioned above added.

This is not the first time PhonePe has explored independent funding as Nigam-led PhonePe had held talks for investments from strategic players like PayPal in 2017. Back then, too, valuation emerged as a deal-breaker and those talks did not result in an investment. However, the discussions with the new investors are more realistic to come through, sources added.

A PhonePe spokesperson did not respond to an email query by TOI. Tiger Global and Tencent did not respond to TOI’s queries either.

PhonePe, before Walmart acquired Flipkart, got a capital commitment of $500 million in late 2017. Little over half of this capital has been pumped into PhonePe, sources added.

While PhonePe has access to the rest of the capital pool committed by parent Flipkart, it needs new funds to feed its high-spend expansion spree that started in the past few months.

PhonePe has got well-capitalised rivals such as SoftBank and Alibaba-backed Paytm, Google Pay, which are fighting for local payments market. Impending entry of WhatsApp could put further pressure on PhonePe and its rivals. A person aware of the matter said PhonePe’s annual spend for 2019 is said to be in the range of $150-170 million. Its rival Paytm too is stitching up a deal that could see it raising $1-2 billion.

As PhonePe plans to continue its offline payments network expansion and enter new business-like wealth management and lending, it will be crucial that it has adequate capital to spend on existing and new businesses.

Nepal bans Alipay, WeChat Pay

Kathmandu: Nepal‘s central bank has banned popular Chinese digital wallets Alipay and WeChat, an official said Tuesday, fearing loss of foreign currency earnings from thousands of Chinese tourists that visit the country. Nepal Rastra Bank issued a notice on Monday, banning the use of the Chinese digital payment platforms popularly used in hotels, restaurants and shops in tourist areas, especially in Chinese-run businesses.

Laxmi Prapanna Niroula, spokesman for Nepal’s central bank said that using the platforms in the country was illegal without the bank’s authorisation.

“We have enforced a ban on Alipay and WeChat Pay because the country is losing foreign currency earnings through its usage. Action will be taken if anyone is found using the platforms,” Niroula told AFP.

Niroula said currently there is no record of how many transactions have taken place through the platforms as they are not recorded in Nepal.

Alipay, started by e-commerce giant Alibaba and owned by its affiliate Ant Financial, and WeChat Pay, built into Tencent’s popular messaging service, have hundreds of millions of users between them and are China’s dominant payment platforms.

Over 150,000 Chinese tourists visited Nepal last year, helping it reach a landmark of welcoming over a million tourists for the first time.

Tourism is a major revenue earner for impoverished Nepal, home to eight of the world’s 14 peaks over 8,000 metres.

Tourism contributed 7.8 percent to Nepal’s GDP in 2017, creating over a million jobs, according to the World Travel and Tourism Council.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source: https://retail.economictimes.indiatimes.com/news/e-commerce/e-tailing/nepal-bans-alipay-wechat-pay/69444581

BharatPe sets sails for providing credits with cheaper interest rate to merchants

To head towards that one goal of business – profits, every startup has to think up ways to monetize efficiently. For digital payments startups, especially for the ones keenly focussing on the merchant side of the business, credit as a monetization avenue really becomes the need of the hour.

One such startup – BharatPe – that is a digital payments platform and has a separate app for merchants, has also started providing credits to these merchants digitally.

It counts on interdependent cyclical relationship of credit and application usage to increase the revenue on its platform. How? More usage of digital payments meaning more scope for lending, and higher the need for credit more the usage of this applications.

This has been done keeping in mind that these unorganised small merchants find it difficult to procure loans from regular institutions, be it NBFCs  or banks or others in the game.

The company that has onboarded with 7 lakh offline merchants on its platform till now has now partnered with NBFCs like Apollo Finvest to offer loans with ticket sizes between the range of Rs 10,000 to Rs 1 lakh at a minimum interest rate of 1.67%, lower than most in the industry.

The target is that at least 20-25% merchants on the platform use the credit services, making for a healthy, efficient, and successful revenue model.

Apart from monetization, this will also help the company in scaling up from the current figures of 10 million transactions worth $400 million altogether to the total payments on the platform reaching around a billion dollars, as co-founder of BharatPe Ashneer Grover told ET.

Given the importance of credit to merchants, BharatPe isn’t the only fish in the pond doing the business of lending to the merchants. Several others like Cars24, Flipkart, Ola and other pure-play fintech platforms are doing the same.

Two differentiators BharatPe is counting on to scale the business and credit facility in this highly competitive market is the separate focus on merchants via the BharatPe Merchant UPI platform powered by QR codes and the low-interest rate.

wallet

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Digital transactions will increase four times to 8707 Cr by end of 2021: RBI

With a promise to offer people of India e-payment experience that will be exceptionally safe, secure and truly world-class, the Reserve Bank of India has come out with vision document for the next three years.

In the vision road map, the central bank outlined 12 expected outcomes, including reduction in volume of cheque-based payments, growth of UPI, a four-fold increase in digital payments, increase in e-payment GDP, reduction in paper-based transactions, improved pricing, better customer grievance redressal mechanisms and establishment of new payment system operators (PSO), out of 36 specific action points over the 36-month timeframe.

RBI, in the vision document, said to witness accelerated growth in individual retail electronic payment systems, both in terms of a number of transactions and increased availability.

The number of digital transactions is expected to increase more than four times from 2069 crore in December 2018 to 8707 crore in December 2021, said ‘Payment and Settlement Systems in India: Vision 2019 – 2021’ document released by RBI.

In the same period, RBI is expected to see an increase in the share of digital payments to 14.8% of gross domestic product (GDP) by December 2021 as against 8.4% in 2018.  It also indicated that debit cards will play an important role in driving digital payments.

Usage of debit cards at PoS transactions is expected to be at least 44% of total debit card transactions, the vision document added. In value terms, it is expected to be 22% by the end of 2021.

RBI further plans to reduce the demand of the cash through enhancing the availability of card acceptance device infrastructure. It is expected to have 5 mn active PoS.

It also talked about creating an ecosystem for healthy competition in payment space.

The payment systems landscape will continue to change with further innovation and entry of more players which is expected to ensure the optimal cost to the customers and freer access to multiple payment system options, said RBI.

In January this year, expressing concerns of concentration in the retail payments space, the RBI had invited public views on opening up the payment space to encourage innovation and competition.

The current Vision document outlines the road map for the three-year period spanning from 2019 to 2021.

wallet script - rpay

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source https://entrackr.com/2019/05/rbi-digital-payment-vision-document-2021/

Here’s a closer look at Paytm’s first ever credit card

Indian digital payments major, Paytm, on Tuesday announced its foray into the credit card business with the launch of its Paytm First credit card, co-branded and issued by Citibank India.

According to the company, the contactless-enabled card issued by Citi will provide one percent cashback on all transactions made by the user, without any restrictions. The cashback will be auto-credited to the card every month.

In addition to this, the company said the card will be accepted in India and internationally, and comes with an annual fee of Rs 500, which will be waived off on spends exceeding Rs 50,000 per year.

Users can also avail exclusive offers on dining, shopping, and travel amongst others on the globally-acclaimed Citi Privileges platform. Further, the card EMI paid by a consumer will be subjective.

 

In a statement, Paytm said that customers can apply for a credit card on their Paytm app, where they will also be able to conveniently track offers through the Paytm First Card passbook.

Paytm First Card customers will also be awarded Paytm promo-codes worth Rs 10,000 on spending a minimum of Rs 10,000 on the credit card within the first four months of issuance, said the company. The Paytm First Card passbook not only allows customers to track their credit card transactions, but also highlights exclusive offers, both from Patym and Citi on a real-time basis.

Speaking on the launch, Vijay Shekhar Sharma, Chairman and CEO – One97 Communications, the parent of Paytm, said,

“We are delighted to partner with Citi to launch the Paytm First Card. Our new offering is designed to bring utmost flexibility to our customers in their digital payment options and will help spur large-ticket cashless payments. We are confident of getting a very good response from our customers.”

Paytm will identify the potential base using a selection tool, jointly developed by Citi and Paytm, to assess credit worthiness. This provides an innovative alternative to underwrite customers, who otherwise may or may not have a credit history.

Paytm also added that the Paytm First card will be offered based on an individual digital behaviour, and has nothing to do with ‘Paytm First’, the company’s premium subscription-based rewards and loyalty programme, launched in March, this year.

Stephen Bird, CEO, Global Consumer Banking, Citi, added,

“Paytm First Card gives us the opportunity to extend our expertise in credit card services to a new all-digital consumer base. What began as an institutional relationship for Citi has grown into a stronger and deeper partnership across the Citi franchise. Today’s announcement affirms how Citi is establishing itself globally as the partner of choice to accelerate growth for our partners, customers, and business.”

However, One97 Communications and Citi’s collaboration goes a long way.

One97 Communications started as a Citi Commercial Banking client in 2009. To support the firm’s growing ambitions, Citi was an advisor on the initial investment by Ant Financial in February 2015 and the subsequent strategic investment by Alibaba Group and Ant Financial Services Group in 2016.

In November 2016, Paytm wallet was integrated with Citibank online and mobile app to make it convenient for Citi’s customers to top up their Paytm wallets online. Citi and Paytm have subsequently, and periodically, built exclusive offerings for Citi debit and credit card customers, such as cashback on movie tickets booked on the Paytm app.

Shinjini Kumar, Country Business Manager, Global Consumer Bank, Citibank India, added,

“The introduction of Paytm First Card is reflective of Citi’s commitment to partner with leading brands and to expand India’s digital ecosystem. Integrating the Citi service experience within a Paytm proposition will build engagement, thereby driving usage.”

Last week, YourStory reported that Paytm’s banking arm, Paytm Payments Bank, was also in talks with Visa to issue contactless debit cards. In addition to this, the payments major was also working with Visa to launch contactless point-of-sale terminals for its merchants who are new to card acceptance.

wallet script - rpay

As E Wallet plays a mighty role in today’s business world, Roamsoft developed a digital wallet solution, RPay with mobile friendly features, well documented API s, plug-ins that suits all major Ecommerce platforms.

Source : https://yourstory.com/2019/05/paytm-first-credit-card-citibank-vijay-shekhar-sharma?utm_source=Firebase&utm_medium=browserpush