mPOS solution provider Mosambee has raised an undisclosed amount of funding in Series B round of funding. The funding has been raised from existing investors Rajasthan Venture Capital Fund and SIDBI Venture Capital Ltd. Both investors will invest in two tranches and the deal is expected to be closed in six months. The first tranche (half of the total investment) has already been infused in the company.
As part of the deal, both RVCF and SIDBI will get a significant minority stake in Mosambee. The company plans to use the raised funds to complete its products range and enhance their capabilities. It is also expanding in overseas markets where it can leverage its technology and enable the local partners to enhance their market presence and connections to create a win-win combination. The strategy has already been implemented in four additional geographies and Mosambee is looking at addressing even more geographies.
According to the company, it has over 10,000 users in India and aims to increase this number to more than 250,000 in two to three years. In 2013, Mosambee has secured $1 million in funding from SIDBI and RVCF.
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RVCF invests in startups and mid-stage companies through its two SEBI registered domestic venture capital funds—RVCF Fund I and SME Tech Fund–RVCF Trust II. SIDBI invested in the Mosambee through its India Opportunity Fund, which provides growth capital to MSMEs operating in sectors such as light engineering, clean-tech, logistics, infrastructure, educational services, and IT/ITES, etc.
In this space, Mumbai based mobile POS service provider Mswipe had raised an undisclosed amount of funding from Matrix Partners and Axis Bank in January 2014.