ICICI Venture invests $22.4m in BTI Payments

BTI Payments is a subsidiary of Australia's Banktech Group. It was set up in 2006 and claims to own and operate more than 6,500 POS terminals and over 500 ATMs.

Last year it received conditional approval from Reserve Bank of India to deploy White Label ATMs (WLAs) where not only the investment but the entire ownership and deployment strategy is with the third-party service provider. The ATMs are to be installed in tier-three and tier-four cities.

The average set-up cost for an ATM in India is estimated to be $16,000-20,000 and BTI aims to install more than 10,000 WLAs in India over the next four years.

BTI's plan to "deploy a large quantity of WLAs over the subsequent years obviously represents a significant investment. In order to achieve this we sought an investor that was innovative, professional and highly respected within the Indian market," according to the company website.

The investment is out of ICICI Venture's India Advantage Fund III. Parent company Banktech will also contribute capital to raise a total of INR 2.5 billion for growth, according to The Times of India.

Last week another ATM and POS services company, Sequoia Capital-backed Prizm Payment Services, was acquired by Hitachi for an undisclosed amount.In August VC firm Aavishkaar invested $6 million in Electronic Payments and Services, while last year CX Partners signed a deal to acquire 75% of the Indian ATM unit of Australia's Transaction Solutions International for INR1.2 billion (then $22.13 million).

 

 

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• Topics
• South Asia
• Financials
• Expansion
• India
• ICICI Venture Funds Management Company
• Financial Services
• Growth capital