Chennai-based startup IppoPay, which counts Coinbase Ventures, Better Capital and Blume Founders Funds among investors, has partnered with Tamilnad Mercantile Bank (TMB) to offer QR code-based UPI payment solutions to small businesses in underserved segments of Tamil Nadu.
IppoPay focuses on facilitating easier transactions through this new solution by tapping TMB’s banking infrastructure, it said in a statement.
As part of this move, the startup’s affiliate Techfini will be processing all the UPI payments using the TMB handle.
For the uninitiated, Techfini is IppoPay’s application programming interface (APIs) solution, providing UPI-based payment infrastructure to banks, financial institutions and fintech companies.
“TMB’s focus on providing banking solutions and IppoPay’s focus on providing digital transaction solutions would make this partnership a win-win. Tamil Nadu alone has over 1 Cr MSMEs, of which over 75% are in Tier II cities and rural areas. IppoPay’s distribution will help us bring digital financial inclusion to a significant base of these merchants,” said IppoPay’s founder Mohan K.
“Partnering with IppoPay is perfectly in line with our vision to enhance digital payment solutions for our clients. We believe that this partnership would help us support small merchants in expanding their customer base and improving their payment processes, thereby driving growth.” TMB’s general manager Ashok Kumar P R said.
Founded by Mohan K and Jai Kumar in November 2020, IppoPay claims to enable offline and online businesses with digital payments.
It helps companies meet the banking needs such as fund transfer, lending and buying insurance, among others. Additionally, it also helps retail sellers to accept UPI payments. Besides, it also claims to assist MSMEs to open current accounts and enable transfer of funds.
It is relevant to note that earlier in July TechFini secured National Payments Corporation of India’s (NPCI) nod to provide UPI-based payment infrastructure to banks, financial institutions and fintech companies.
The innovations come close on the heels of IppoPay securing an undisclosed funding in August from Caratlane’s founder Mithun Sacheti and Jaipur Gems’ chief executive officer Siddhartha Sacheti.
Prior to this, the startup raised $2.1 million in its seed funding round from Coinbase Ventures, Better Capital, Blume Founders Fund, and a host of angel investors to strengthen its technology stack, expand into new geographies, cater to SMBs and launch a BNPL service in 2022.
In the same year, the startup also made two separate purchases, buying AI enabled risk management startup Tutelar in September and Roamsoft Technologies in December for an all cash deal.
