The mobile payments solutions provider Citrus Pay is in talks with its new and existing investors to raise around $70 million. Out of the total investment, the company is targeting to get $20 million from its existing investors, while the rest $50 million is planned to be from the new ones. Meanwhile, its existing investor, Sequoia Capital, has committed a funding of Rs 1 billion to the company.
According to Citrus Pay, the raised capital will be utilised for offline expansion of its business as well as setting up a payments bank. The company has recently applied for a payments bank licence to the Reserve Bank of India. As per the guidelines on payments bank, Citrus Pay on having procured the payments bank licence, can raise deposits of up to Rs 100,000 per individual, issue ATM/debit cards and sell simple financial products such as mutual funds and insurance products. It would also be allowed to offer payments and remittance services through various channels.
