JusPay Raises $ 60 Million From SoftBank Vision Fund 2 And Others For $ 460 Million Valuation
JusPay Technologies Pvt Ltd, which operates a payment technology platform, has raised $ 60 million in its Series C funding round led by SoftBank Vision Fund 2, the company said in a statement on Wednesday. The fundraiser values ââthe company at $ 460 million, said Vimal Kumar, founder, CEO of JusPay. VCircle in an exclusive interaction.
Existing investors VEF, an emerging markets fintech investor, and Wellington Management also participated in the round table, the company said. JusPay will use the funds to improve its technology infrastructure to improve the company’s platform and expand its business into payments and contiguous products like credit – both in India and overseas.
Kumar said VCircle that the company currently processes 10 million transactions per day, with a gross value of over $ 5 billion per month, and that it plans to reach 100 million transactions per day. Kumar believes that the current infrastructure for payments and banking technology requires huge investments and believes that the infrastructure for payments will evolve further.
Kumar explained that there are sectors within the micro-payments category like transportation and agriculture, where payment issues have yet to be resolved. He also said that there are a few new use cases, including subscriptions and immediate payment (BNPL), where payment issues have yet to be resolved. Kumar believes these sectors will accelerate over the next few years and the lending space in India will also experience a lot of disruption with the innovative products offered by new age companies.
âSo to aggregate all of this or even help banks provide credit to the next hundred million users in India, offers a huge opportunity,â Kumar said.
Kumar declined to comment on JusPay’s revenue and profitability. JusPay, which generates revenue per transaction, derives the bulk of major Tier I and II cities from it, Kumar said, adding that Tier III city revenues are growing rapidly. E-commerce contributes around 30-35% of its income, followed by BFSI (banking and financial services) which includes insurance and other financial services. Consumer services such as hyperlocal delivery, food technology and entertainment services also contribute significantly to JusPay’s revenue, said Shan MS, Chief Growth Officer of JusPay. VCircle in a virtual interaction.
Founded in 2012, JusPay claims that one of its solutions – JusPay Safe – is the world’s first payment browser that simplifies payment authentication. The company also claims that its payment SDK (software development kit), which it calls HyperSDK, has been installed on 250 million mobile phones and claims that it is the largest payment SDK in the world. The company also offers Express Checkout, a payment orchestration platform to increase transaction success rates.
For SoftBank, JusPay’s investment marks its re-entry into the fintech space, after the Japanese conglomerate left One97 Communications or Paytm in November. SoftBank recently invested in software as a service (SaaS) company SenseHQ for a valuation of over $ 500 million through its SoftBank Vision Fund 2.
The venture capital fund has invested more than $ 3 billion in Indian companies this year, President Masayoshi Son said earlier this month. Son also said SoftBank has invested $ 14 billion in India over the past decade. Other companies in SoftBank’s portfolio in India include Snapdeal, Ola, Oyo, Flipkart, Swiggy, Delhivery and Lenskart. Many of these companies are lining up initial stock offerings over the next year.
âJuspay is one of the most innovative high-tech companies in India’s growing digital payments market. We believe in Juspay’s vision to simplify payments for billions of people around the world and generate higher income at lower cost for merchants, âsaid Vishal Gupta, director of SoftBank Investment Advisers.
Avendus Capital advised Juspay in this funding round.
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