Mobile payment startup Momoe has raised $1.2 million (Rs 7.4 crore) from investors led by IDG Ventures India and Jungle Ventures, with participation from India Quotient, making it one of the largest rounds of seed funding.
Founded in April 2014, Momoe is the developer of an app that enables people to make payments using their mobile phones when they eat out, shop or commute. Unlike Paytm and Mobikwik, which facilitate cashless payments with a virtual wallet solution that stores a fixed amount of cash, Momoe's app works by using credit-card details.
"We are the early movers in the space," said CEO Utkarsh Biradar, 44, a graduate of the Indian Institute of Technology, Bombay, who expects the company to handle Rs 3,000 crore worth of transactions in the next 18 months. Founded by Biradar, Karthik Vaidyanathan, Ganesh Balakrishnan, Neelesh Bam and Aiman Ashraf, who are mostly graduates of IITs and IIMs, Momoe is present in Bengaluru. The funds will be used to expand the team as Momoe plans to reach 500 merchant outlets in the next few months.
"The chemistry with the team was instant. This team was also one of the most complete teams one sees at early stage," said Anand Lunia, founder and partner of India Quotient. While the facility offered by Paytm and MobiKwik does away with the two-factor authentication to make payments, Momoe eliminates the need for a wallet. Momoe gets a cut from merchants for each transaction, similar to the rate charged for existing mobile point-of-sale terminals.