PayMate raises $9m in round B

PayMate India has announced the closure of its second round of investment of $9m led by Mayfield Fund and participation from existing investors, Kleiner Perkins Caufield & Buyers and Sherpalo Ventures.

Following this development, Nikhil Khattau MD of Mayfield Advisors will join the board of PayMate. “We believe mobile electronic payments and remittances are the way of the future in India and we believe PayMate is the leader in this category,” says Khattau. “PayMate has figured out how to unleash the potential of the phone which is becoming the primary transaction terminal for the over 260m mobile users in India. This investment fits into our Mayfield India strategy extremely well.”

The three blue chip funds together are investing $9m as part of series B investment in the two year old company. PayMate operates in the arena of electronic payment solutions to enable transactions on mobile phones and wireless devices for Indian & Global markets (MPW 85, 86, 112, 113). PayMate's ambition is to become the world's largest and most broad-based m-payment ecosystem merchant.

PayMate has ventured into significant alliances with prominent banks like Corporation Bank, Cosmos Bank, Bank of Ceylon, HDFC, Standard Chartered Bank, Canara Bank, ABN Amro amongst others to introduce m-banking solutions for their customers. It has also launched a mobile gift voucher, Gift Mate (MPW 111), which offers the flexibility and choices that are not available with traditional vouchers. The company has also allied with telecom service providers like Tata Indicom and airlines like KINGFISHER (107) to enable its subscribers to book flight tickets anywhere, anytime on the mobile. PayMate's latest initiatives include utility bill and LIC insurance premium payments.

Commenting on the investment, Kleiner Perkins Caufield & Byers comment: “In a short period, PayMate has made significant progress in the Indian sub continent, even by global standards. We believe that PayMate is poised to achieve an international footprint and leadership in the near future and hence KPCB is pleased to continue its association with PayMate in its next round of growth capital”

“Receiving investments from global blue chip players like Mayfield Fund, Kleiner Perkins Caufield & Buyers and Sherpalo Ventures is a great recognition for our company and what we have achieved in a short period of time,” responds a PayMate spokesperson. “We are extremely encouraged by the confidence that the investors have shown in us. We believe that the global knowledge and experience of our investors will help us scale our business strategically.”