Mumbai-based prepaid cards firm ItzCash has raised Rs 100 crore investment from promoter Ashok Goel as it seeks a payment bank license from the Reserve Bank of India. The RBI’s guidelines has stimulated that a company needs to have a minimum paid-up equity capital of Rs 100 crore and Goel’s commitment helps the company meet this requirement.
As per an ET report, ItzCash will continue to operate with an independent management, and Goel’s investment will be in a personal capacity with no cross holding with parent the Essel Group. Naveen Surya, ItzCash Card’s managing director also said that the company will be looking to raise an additional Rs 500-600 crore from financial and strategic investors including banks to expand the business, if RBI gives it licence.
In 2009, the firm had raised Rs 50 crore from LightSpeed Venture Partners and prior to that it had received Rs 10 million from Matrix Partners and Intel Capital. ItzCash’s rivals in similar space include Paytm, MobiKwik, Oxigen and FINO PayTech.