Mobile payment solutions company, My Mobile Payments limited (MMPL), which operates under the brand name MoneyOnMobile, is in advanced talks with private equity (PE) investors to raise $40 million (Rs 2.50 billion). The proceeds are likely to be utilised for technology upgradation, such as providing mobile tablets to the company’s retailers.
The company plans to dilute 10 per cent of its equity as part of the fund raising, at a valuation of Rs 15 billion. The valuation has been done by merchant bankers Cipher-Plexus, which have placed the pre-money valuation at between Rs 12.50 billion and Rs 15 billion, and post-money valuation at Rs 17.50 billion.
MMPL has previously received an investment of $29.7 million in Calpian Inc, a Texas-based company, in 2012 for its m-wallet service, MoneyOnMobile. At present, the transactions on this platform have reached 600,000 a day, and these volumes are likely to reach 1.5 million a day by the end of this financial year. MMPL garnered revenues of Rs 10 billion in the 2013-14 and expects to earn revenues to the order of Rs 15 billion in 2014-15. The company currently has a franchised retail network of 250,000 outlets, or ‘touch points’, that do a business of Rs 55 million a day.
