Avendus Capital advises Mswipe on its Series D financing round of USD 41 million

8th December 2017 | Mumbai | Investment Banking

Mswipe Technologies has completed a USD 10 mn Series D round with BCapital and DSG. This comes after the earlier $31 mn investment by UC RnT, FalconEdge, Matrix and DSG, taking the total Series D round size to $41mn.

Avendus Capital was the exclusive financial advisor to Mswipe’s Series D round.

Mswipe offers low cost payment acceptance solutions to merchant establishments across the country. The company has established a network of 280,000 terminals spread over 650cities and towns in the country. Mswipe’s omni-channel platform offers merchants an easy and efficient way to accept digital payments like UPI, Google Tez, PhonePe, BharatQR, and BHIM in addition to card payments using Mswipe’s payment terminals, mobile phones, tablets or PC’s. Nearly 80 per cent of Mswipe’s customer base comprises SME merchants, typically supported by 1-30 employees.

Commenting on the transaction, Manish Patel, founder & CEO, Mswipe said “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.”

The Indian government’s demonetization of bank notes in November 2016 flipped the dynamics of the payment ecosystem by rapidly accelerating the adoption of digital payments in India. Card payments at POS (point of sale) terminals have gone up 32% in the five months following the demonetization with the number of POS machines growing to 1.6x in 6 months. However, with more than 80% of MSMEs without access to digital payments, there exists a large opportunity for MSME focused players like Mswipe with targeted products and services.

Commenting on the transaction, Abha Agarwal, Director at Avendus Capital said, “Manish and his team have built a strong product offering focused on the small and medium retailers. The market has been traditionally underserved by banks with less than 5% POS penetration. However, with the push for digital payments, the market is poised to grow by at least 4-5x in the next five years. We believe that Mswipe is well positioned to tap into this growth and become the leading merchant acquirer in the country."

About Avendus Capital Pvt. Ltd. (“Avendus Capital”)

The Avendus Group (Avendus) is a leading provider of financial services with an emphasis on customized solutions in the areas of Financial Advisory, Wealth Management, Structured Credit Solutions and Alternative Assets Management. Avendus relies on its extensive experience, in-depth domain understanding and knowledge of the regulatory environment, to offer customized solutions that enable clients to meet their strategic aspirations. Avendus Capital has consistently been ranked among the leading financial advisors by overall number of deals. It has a strong track record of cross-border transactions and has helped multiple clients benefit from opportunities across geographies. Avendus’s wide range of clients is testimony to its ability to serve its corporate clients throughout their life cycle – from growth stage funding to complex, large sized transactions later in the cycle. Avendus Capital Inc. and Avendus Capital (UK) Pvt. Ltd. located in New York and London respectively are wholly owned subsidiaries offering M&A and Private Equity syndication services to clients in the respective regions.

For more information, please visit www.avendus.com

Stay updated with the latest on Avendus