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Nirvana Venture backs Indian prepaid services provider

  • Alvina Yuen
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Mumbai-headquartered payments provider TranServ has raised an undisclosed amount from Nirvana Venture Advisors. The investment will allow TranServ to scale up operations and deliver its planned products.

Amit Patni and Rajan Mehra, chairman and managing director of Nirvana Venture Advisors, will join TranServ's board as part of the transaction.

Founded in 2011, TranServ offers prepaid card programs to banks, retailers and other companies, specifically tailored for the Indian market. Its strategy is to partner with banks to deliver payment services through existing banking platforms, with a focus to develop electronic payment solutions for underserved communities.

Last year, retail consumer spending in India increased at over 15% year-on-year to $900 billion. Of this, more than 90% was transacted in cash, suggesting there is a significant commercial opportunity in getting people to switch to electronic payment.

According to The Boston Consulting Group, India's pre-paid credit and debit card market is expected to reach $59 billion in 2017, a sevenfold increase on 2011. Axis Bank is currently the market leader with a more than 39% market share, while Itz Cash Card is on 22%. Other participants include ICICI Bank, ICash Card, OxiCash Card and Done Card Utility.

"At Nirvana, we believe that the payments landscape is transforming in India and that offers a large opportunity for new products and business models," Mehra said in a statement.

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