Spice Money: Industry Monitoring 23 May 2019
- Priyanka Kanodia
- Jun 10, 2019
- 3 min read
Industry News
NBFC cash crunch stings fintech firms
Publication- The Economic Times
Edition- Online
Date- 23 May, 2019
Some fintech companies are facing a funding crisis while others are shutting shop, as the liquidity crunch among nonbanking finance companies (NBFCs) spills over into the digital lending space. For Capital Float, one of the largest fintech NBFCs in the country, the talks to raise funds from digital payments major PayU are learnt to have got stuck in a prolonged due diligence process because of the former’s asset quality being under scrutiny. The talks may, however, result in a complete sale at a lower valuation, two people in the know told ET.
“The funding process is taking time and the valuation may get renegotiated down,” said one of the people. ET reported in its February 19 edition that PayU was in talks with Capital Float to invest around $100-$150 million at a valuation of $500 million. “With this, the company could now be valued at somewhere around $400 million and a full acquisition is likely,” said another person close to the developments. A Capital Float spokesperson said the news was “speculative in nature” and did not offer a comment. Capital Float is backed by investors like Amazon, SAIF Partners and Sequoia Capital. ET understands that they could be looking at a complete exit through this deal.
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Wipro builds a blockchain-based solution to enable payments for airline industry
Publication- Business Standard
Edition- Online
Date- 23 May, 2019
IT major Wipro said on Wednesday it has developed a blockchain-based payment solution for Travacoin, a company specialising in an eponymous digital payment solution. Travacoin is a digital payment system which enables airlines to refund and compensate passengers in a timely manner when a disruption occurs. Passengers will be notified of a delay or cancellation and refunded in this digital currency, which can be used to repurchase airline tickets, book hotels and avail other airport and travel related services.
"We are encouraging blockchain innovation by actively engaging with firms focused on solving real-world business problems," said Krishnakumar Menon, Vice President for Service Transformation and Blockchain Theme Leader at Wipro Limited. A recent study conducted by FTI Consulting indicates that Travacoins will save airlines between 20 and 40 per cent of what they are currently paying passengers in cash. Brian Whelan, Chief Executive Officer of Travacoin, said: "Airlines respond defensively, consequently losing customer loyalty as well as millions in hard currency along the way. This solution offers airlines a cost-effective way to reconnect with their passengers in a positive way, turning adversity into opportunity."
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BharatPe shopkeepers won rewards worth 5.5 million
Publication- Business Standard
Edition- Online
Date- 23 May, 2019
India's largest merchant service and UPI payments app, BharatPe today announced the winners of its 2019 World Cup contest. 11 merchants from Bangalore, mostly independent business owners will be travelling to the UK for India vs Bangladesh match on July 2, 2019. The match will be played at Edgbaston Cricket Ground, at Birmingham, England. During the contest, BharatPe shopkeepers won rewards worth Rs 55,00,000 overall. "BharatPe is our endeavour to serve the nation by enabling seamless UPI payments acceptance at offline merchants. The motive of the WC Campaign was not just to reward high doers, but also to promote trust, loyalty and excitement among the merchant community", said Ashneer Grover, Co-founder and CEO of BharatPe.
The Cricket WC'19 contest was live in 5 cities, Bangalore, Hyderabad, Pune, Delhi and Mumbai, from February to April 2019. BharatPe created teams of 11 merchants in each locality - India's first community-based reward initiative; the whole team's scores were calculated to rank them for the prizes. The endeavour was to promote UPI payments among offline merchants through the contest.
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