Lightspeed Venture Partners invests Rs400 million in Itz Cash Card
July 24, 2009
India's Itz Cash Card Ltd, an e-card services provider, said US-based venture capital investor Lightspeed Venture Partners invested about Rs400 million in the company.
Itz Cash, the Essel group company, said besides Lightspeed, Intel Capital and Martix Partners India, also invested additional Rs20 million and Rs80 million, in the company.
Itz Cash prepaid cards offer cashless payment solutions for individuals and businesses across physical, internet and mobile channels.
Ashok Goel, vice chairman and managing director, Itz Cash said,"After this deal, the valuation of the company comes to Rs4 billion. The fresh round of funding received by the company will be used to expend the e-card business. We have already charted out a business plan for next three years and expect our turnover to touch Rs100 billion from Rs17 billion."
"We believe there is significant growth potential for this product, given that cash accounts for approximately 97% of the country's retail payments, which exceed $500 billion. We are impressed by Itz's unique business model and its strong growth," said Bejul Somaia, managing director, Lightspeed Advisory Services India Pvt Ltd.
Somaia has joined the board of directors of Itz Cash.
Itz Cash is also planning to enter credit card business through tie ups with some banks. For using the company's services one do not have to register himself as customer. However, for any transaction of more than Rs10,000 the customer has to provide certain document as per the know your customer (KYC) guidelines of the Reserver Bank of India, said Naveen Surya, managing director, Itz Cash.
Currently, Itz Cash earns about 80% of its revenues from Reliance Infrastructure's electricity bills payments, while about 18% comes from Indian Railway Catering and Tourism Corp (IRCTC) which provides catering, tourism and online booking to India Railways and rest comes from its sister concern, Playwin India. – Pallabika Ganguly[email protected]