United States based global eCommerce giant, Amazon has acquired Indian online payment solution provider startup, Emvantage. The terms of this deal have not been disclosed yet.
Emvantage, started by Vivek Sagar in 2012, provides ‘platform as a service’ for banks, merchants and online portals by offering a payment gateway for online transactions. The startup has quite a few products in its portfolio including a payment gateway, mobile payment solution and a pre-paid card solution to integrate into merchant application along with a prepaid wallet.
Talking on this development, Srinivas Rao, Director Amazon Payments India said that Emvantage comes as a valuable addition to the team as Amazon is trying to accelerate the payment offering solutions in India. With the help of Emvantage, Amazon will be able to build better payment solutions specifically for the Indian market.
As part of the deal, Emvantage team will move to Amazon. The acquisition, whose processes are in progress, is expected to be over by the end of first quarter of 2016.
This deal seems to have a significance considering the rate at which eCommerce market in India is growing. The Indian eCommerce market is expected to be worth $100 Million by 2020. Amazon is looking to take the advantage of the whole scenario at a time when it faces big competition from rivals such as Flipkart, Snapdeal and PayTM. Recently, Amazon had invested $300 Million in Amazon Seller services to boost its presence in India and strengthen the logistics.