Shopclues a Gurgaon based online managed marketplace has acquired Momoe Technologies a Bangalore based mobile payments startup.
With this deal, IDG Ventures India, Jungle Ventures and India Quotient, who have invested in Momoe, will get both cash and stock in ShopClues.
With this acquisition with Momoe, ShopClues will bring innovative digital payments for its customers and merchants on its platform. It will use Momoe’s technology to boost its payment network for merchants.
In January 2016, ShopClues raised $100 million funding. The round was led by Singapore’s sovereign wealth fund GIC and is valued at $1.1 Billion. Other investors participated in this round includes Nexus Ventures Partners and Tiger Global Management LLC.
Sanjay Sethi CEO of ShopClues said
“We got five very senior people in the company as a part of this acquisition, which is the most exciting part. Momoe comes with a working merchant base, PCI compliance which would have taken us 8-12 months to obtain and banking relationships. Building a payments business requires a different DNA.”
Momoe was founded in April 2014 by Kartik Vaidyanathan, Utkarsh Biradar, Neelesh Bam, Ganesh Balakrishnan and Aiman Ashraf. It is a developer of an app enabling users to make payments to make payments to offline and brick merchants with their mobile phones. Its app is linked with debit card, credit card and net banking. It has tied up with more than 3k merchants in Pune and Bangalore.
With this deal, Ganesh Balakrishnan will lead monetization and services platform, Utkarsh Biradar is expected to join a VP heading design & product, Aiman Ashraf will be technology head for payments, Kartik Vaidyanathan will work on strategic initiatives with Radhika Aggarwal, Co-founder of ShopClues, Neelesh Bam will help ShopClues in expansion of their base in South India and also will be heading merchant acquisition.
Momoe claims to have more than 1,050 merchants across various sectors. After getting visibility and reach from breweries and dining restaurants, it expanded to salons & spas, grocery stores, hyperlocal apps and apparel stores. With an average ticket size close to Rs 900 it claims to have process around 1000 transactions a day.
In December 2014, it had raised $1.2 million in seed funding from IDG Ventures, India Quotient and Jungle Ventures.