Buoyed by the big jump in online traffic, the e-commerce players are beefing up their payment infrastructure by acquiring companies in the mobile and online payment space.
Tracxn Start-up Research in, its latest Fintech India October 2016 report, said that players in the e-commerce and the broader consumer internet sector are augmenting their payment infrastructure, in an effort to build a complete ecosystem as part of their service offerings, by acquiring companies in the mobile and online payment segment.
Some of the other notable buyouts of the year till date include Amazon’s acquisition of online payment gateway services Emvantage, Flipkart’s acquisition of UPI-based payment app PhonePe, Ola’s acquisition of interbank mobile payment platform Qarth and Shopclues’ acquisition of mobile wallet for offline stores Momoe among others. “It is significant that most of the acquiree companies are in the mobile and online payment space, indicating that prominent acquirers in the e-commerce and the broader consumer internet sector are augmenting their payment infrastructure, in an effort to build a complete ecosystem as part of their service offerings,” the report said.
Overall, the fintech sector had witnessed consolidation activity with over 10 major acquisitions in the year to date, with PayU’s acquisition of Citrus Pay being the biggest deal of the year in this space by value ($130 million). Analyzing the trends in country’s fintech segment the report pointed out that some of the most notable funding deals of the year were bagged by companies offering mobile payment solutions, wallet services and online lending platforms.
Paytm ($105 million), MobiKwik ($90 million), FINO PayTech ($38 million), NeoGrowth ($35 million) and Capital Float ($25 million) accounted for some of the notable investment activities for the year.