With the motto to give value to its customers Suvidhaa Infoserve Pvt. Ltd., announced the completion of a USD 12 million third round of funding by new investor, Mitsui & Co., Ltd., Japan based Corporate Conglomerate. It was confirmed after the signing of an agreement concerning the acceptance of a new share issue on October 20, Mitsui invested US$12 million in Suvidhaa Infoserve. Suvidhaa will use the new capital to further enhance its technology platform, broaden its portfolio of consumer service offerings and aggressively expand its market presence in neighborhood stores pan India.
“we are excited in making this strategic decision to move into the field of electronic payments in India through our investment in Suvidhaa. We believe that Suvidhaa has not only proven its social value of providing an alternative payment method for the general public, but also has significant potential to expand its business into related areas, such as e-wallet and mobile payment, through the introduction of advanced Internet technology” said Yasushi Okazaki, General Manger of Internet Business Division of Mitsui & Co., Ltd.
In last four years, Suvidhaa has established more than 45,000 neighborhood stores called ‘Suvidhaa Points’ across India. Suvidhaa has grown its presence in 28 states and throughout 2000 cities. Suvidhaa Infoserve provides Internet-based payment collection services for various industries, including mobile telephone services, electric power, gas, insurance and e-commerce. At present, 45,000 retail outlets serve as cash collection points, but the company plans to increase the number of collection points to 100,000 over the next two years and to expand its services throughout India.
Throwing light on funding Paresh RaJde, Founder and CEO, Suvldhaa lnfoserve Pvt. Ltd. said, we are happy to have Mitsui on board, which reflects the strength of Suvidhaa’s business model and brand Suvidhaa. This investment underscores the opportunity for Suvidhaa to become the Numero Uno payment management company in the Country. The global experience and expertise of Mitsui across key industry categories will certainly help Suvidhaa in gaining scale, strategic alliances and adopting best practices.”
Mitsui is one of the most diversified and comprehensive trading, investment and service enterprises in the world, with 153 offices in 65 countries as of Jan, 2011. Mitsui has decided to participate in the on-line payment collection business in India, because of the social value of providing a new payment method for the general public in partnership with the World Bank Group.
Through its participation in this business, Mitsui aims to provide Indian consumers with access to payment methods and to use the business as a hub for the creation of value in the field of e-commerce and other consumer services.