On Wednesday, Nearex, a Singapore-based mobile payment startup, has raised undisclosed amount series B round of funding led by the existing investors Tata Capital Growth Fund LP.
Founded in 2012 by Mayank Sharma and Arun Tanksali, the startup Nearex specializes in mobile payments and mobile point of sale (mPOS) systems for developing markets. The company’s product ‘Xip’ along with mobile cash service providers allow cashless transactions between consumer and merchants. XipPOS is a low-cost credit card sized mobile point of sale sticker that provides enterprise product and solution. Nearex system is similar to the Google Wallet or PayPal but the only difference is mobile money need not be connected to an existing bank account or credit card.
Apart from Tata Capital, Nearex’s existing investors, BEENOS Asia, a Japanese company with widespread payment industry investments around growing markets and Xinvesco also took part in the current round of funding.
With the new flow of funds and following its gained traction across Africa, the startup is planning to expand to other emerging markets. It plans to enter markets that have little or no access to traditional cashless payments systems such as credit and debit cards from Southeast Asia to Latin America. The funds will allow the startup to boost the support structure for its services and customize its product for use in different areas like retail and transportation. It would not stop working on its product’s hardware and software components.
Tata Capital’s participation gives the company a way to understand the emerging markets like India. Companies CEO Mayank Sharma said, “Beside their mammoth presence in India, Tata Group also has a very well established distribution network across Africa.” He also added, ” Our product has no clear references in the developed world, so the investment team had to value our potential based on the unproven business model and growth prospects in the emerging market. The efforts they have made to understand our business space makes them a very valuable partner, and their emerging market footprint as well as professional management practices will permit Nearex to scale as well-structured and robust organization.”