India payments firm FSS raises $57m from Premji Invest

Founded by banker-turned-entrepreneur Nagaraj V. Mylandla in 1991, FSS offers services covering e-payment, financial transaction processing and hosted payment processing. 

Its other services include card management, merchant management, internet payment gateways, mobile banking and mobile payment, and reconciliation and settlement. Headquartered in Chennai, FSS has offices in Australia, Canada, Europe, Middle East, Singapore and the US, and employs over 1,500 people.

The investment represents the fourth time FSS has raised private equity capital. The Carlyle Group invested $12.25 million in the company across two rounds, putting in $2.25 million in late 2000 and then investing another $10 million in April 2004. It later exited its stake in the company to Jacob Ballas and New Enterprise Associates (NEA). who together invested $60 million for a 40% holding.

According to a release, the new funding will be used to further the company's development of internet and mobile payment solutions, expand its hosted business services and strengthen its software products and intellectual property portfolio.

FSS, which plans to go public within the next 18 to 24 months, will also use the capital to accelerate it overseas expansion plans.

"The latest round of funding from Premji Invest, along with the active support of our existing investors, NEA and NYLIM Jacob Ballas, will enable us capitalize on the emerging opportunities in digital payments much faster and consolidate our position as a global leader in payments," said Mylandla.

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• Topics
• South Asia
• Financials
• Expansion
• India
• Financial Services
• Growth capital
• New Enterprise Associates
• Jacob Ballas Capital