Bengaluru-based mobile payment startup Momoe has raised $1.2 million in seed round led by IDG Ventures India and Jungle Ventures with participation from India Quotient.
As per an ET report, the raised funds will be used to expand the team as Momoe plans to reach 500 merchant outlets in the next few months.
Founded in 2014 by Utkarsh Biradar, Karthik Vaidyanathan, Ganesh Balakrishnan, Neelesh Bam and Aiman Ashraf, Momoe is an app developer that enables people to make payments using their mobile phones when they eat out, shop and commute. Unlike Paytm and Mobikwik wallets, which facilitate cashless payments with a virtual wallet solution that stores a fixed amount of cash, Momoe’s app works by using credit-card details. Momoe eliminates the need for a wallet. It gets a cut from merchants for each transaction, similar to the rate charged for existing mobile point-of-sale terminals.
Also, the company expects to handle Rs 3,000 crore worth of transactions in the next 18 months. “We are the early movers in the space,” said CEO Utkarsh Biradar.
Recently, Alibaba Group’s finance arm, Ant Financial had agreed to buy 25% stake in One97 Communications Ltd., owner of an online payments processor Paytm, for an undisclosed deal amount to tap into Indian growing e-commerce industry.