Mumbai-based Mobile payments startup, Ftcash, has raised an undisclosed amount of funding from the early-stage venture fund 500 Startups. In this pre-series A round, IvyCap Ventures, an existing investor has also participated.
As per the company plan, the fund will be utilized for the product development and merchant acquisition followed by talent acquisition as the company further plans to expand operations in Mumbai, Surat, Jaipur and Pune.
Sheel Mohnot, Partner, 500 Startups said, “The Indian start-up ecosystem is an exciting place for investors and VCs. ftcash has established itself as one of the most innovative companies today in the FinTech sector. Through our association with the company, we aim to help the company unlock the vast market potential for its product, possibly on a global scale.”
Founded by Sanjeev Chandak, Deepak Kothari, and Vaibhav Lodha in 2014, FTcash primarily offers its services to MSMEs, home-based entrepreneurs, mom and pop stores. The startup aggregates all payment methods including credit/debit cards, net banking, various mobile wallets, UPI and PayPal to create an open architecture-based platform for merchants to initiate digital payments. It also facilitates loans for merchants and allows them to re-pay directly through the platform.Most recently, the startup has partnered with over 15 non-banking financial companies to provide working capital loans to its merchant partners. It offers an interest rate of 18-30% per annum and the ticket size of its loans is Rs 25,000 to Rs 5 lakh.
Most recently, FTcash has partnered with over 15 non-banking financial companies to provide working capital loans to its merchant partners. It offers an interest rate of 18-30% per annum and the ticket size of its loans is Rs 25,000 to Rs 5 lakh.
The startup claims to facilitate payments solutions to more than 25K merchants. It further plans to scale to $233 Mn (INR 1,500 Cr) worth of annual transactions.
Of late, FinTech has become attractive options for the Venture capitalists, angel investors, high net worth individuals and private equity houses. The global FinTech sector is expected to be $45 billion in value by 2020, growing at a CAGR of 7.1% while Indian FinTech market is expected to reach $2.4 billion by the given year.