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/

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/

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.

Role of RPay platform in developing Pop pay

Overview of Pop pay

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Pop Pay provides a convenient way for a user to make in – store payments and can be used at merchants listed with the Pop Pay service provider

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Continue reading Role of RPay platform in developing Pop pay

Trending digital payment methods

Mobile In-Store Payments & Apps

The improvement and utilization of portable POS alternatives will increment exponentially as the interest and use of cell phones develops. A couple of certainties about smart phone use:

Almost 90 percent of twenty to thirty year olds today claim and are in close contact with their cell phones for the duration of the day.

Shoppers are as of now making over $4 billion worth of buys from their cell phones. Analysts foresee that the numbers will reach $34 billion in only a couple of years.

In an ongoing report, 56 percent of buyers said they would utilize their cell phones as a payment method in the event that it was a simple alternative.

Continue reading Trending digital payment methods