News Column

My Mobile Payments Buys Into OSS India

June 15, 2014

@My_Mobile Limited that runs mobile money service Money on Mobile has bought a significant stake in the Mumbai-based OSS India, operator of cash card service Done Card. The financials of the deal were not disclosed.

MMPL which had received a five year extension of its prepaid wallet license in October 2013 will manage the day-to-day activities and will be looking to strengthen its business particularly in railway and bus ticketing segment offered through RailTicketonline and BusTicketonline respectively. Other services offered to its consumers include air ticketing (FlightSafar), hotel booking (HotelSafar), mobile & DTH recharge (Mobileseva) and money transfer service (MyMoneySeva).

The company receives 0.5% to 1% commission on each transaction from the merchant or the utility concerned while 80% of it has been paid to the MOM retailers as their commission.

It had started with INR 190 Mn in total transaction value in the first year, followed by INR 2,500 Mn next year and INR 6,500 Mn in the year ended March 2013 and was expecting a four-fold increase in transaction value at INR 25,000 Mn during FY14.

The company was planning a Series B funding of between $75 Mn and $100 Mn to funds its growth and expansion plans. It had sought $29.7 Mn in Series A from Calpian Inc, a Texas-based public company that deals with electronic payments processing.

Money on Mobile had received a five year extension of its prepaid wallet license in October 2013 whereas OSS surrendered its prepaid wallet licenses in October 2013.

OSS India currently operates the cash card service Done Card and a range of consumer-centric services under the One Stop Shop brand.

Other recent deals;

Private Limited had received a $5.5 Mn funding from two strategic investors - Japanese online payments company econtext Asia and Beenos Asia.

San Francisco based mobile payments company Boku Inc had acquired Mumbai based Qubecell for an undisclosed amount.

Limited was planning to raise INR 275 Mn from foreign investors

For more stories on investments and markets, please see HispanicBusiness' Finance Channel

Source: DealCurry (India)

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