The Gurgaon-based payments solution provider, Oxigen Services India, is planning to raise round $200 million from its investors to facilitate the expansion of its mobile wallet offerings. The company has plans to increase its presence to more than 200,000 locations around the country.
It is reported that the company will receive the first installment of $50 million from private equity firms, strategic investors and development financial institutions by end-2014. If successful, the investment would be the third round of institutional funding for Oxigen.
Meanwhile, Oxigen plans to apply for a payments bank licence after the final guidelines from the Reserve Bank of India are released. Oxigen is of the view that the proceeds from the funds will help its transition into a payments bank. The license will allow the company to offer a limited range of banking services such as acceptance of demand deposits and remittances of funds to small business units and low-income households, although it would not be allowed to lend funds.
Oxigen launched its mobile wallet services in August 2014 and claims to have a user base of more than 3 million with daily transactions of about Rs 100,000.
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