On Friday, 15 July 2016, ShopClues, an online marketplace has acquired Momoe, a Bengaluru based mobile payments firm to develop a secure payment arm to its business.
As per the news published in The Economic Times, the overall cost of the deal secured at $10-12 million and paid in cash and stock. Due to this association, the e-commerce company can now establish their branch in the capital city of startups, Bengaluru with all Momoe founders likely to join the senior management of Shopclues.
The merger will also help ShopClues to kickstart its own semi-closed wallet and better provisions for merchants.
Sanjay Sethi, the 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 2014 by Utkarsh Biradar, Ganesh Balakrishnan, Karthik Vaidyanathan, Neelesh Bam, and Aiman Ashraf. In March 2016, it has raised seed funding of $1.2 million from Jungle Ventures, IDG Ventures India, and India Quotient. The investors are expected to get cash and stock in ShopClues as a part of the transaction.
It is expected that the co-founder Utkarsh Biradar will join the firm as Vice-President managing the product and design on the merchant side, while Ganesh Balakrishnan is likely to head platform monetization and services. Another founder, Neelesh Bam will lead the merchant acquisition and help ShopClues to expand their business in South India and Aiman Ashraf will be working as Technology head for payments and Karthik Vaidyanathan will work with Radhika Aggarwal, ShopClues co-founder, on strategic initiatives.
Sethi added, “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,”
Anand Lunia, Co-founder of India Quotient, said “Payments is a tough talent to acquire and Momoe’s team will help ShopClues monetize their large base of merchants by building payment tools for them which can add to their margins,” said.