Payment solution provider Paynear Solutions Ltd said on Friday it has raised $2.5 million (Rs.16.7 crore) from serial investor Mitesh Majithia as pre-A series funding.
"The pre-funding will help us in raising $10 million (Rs.67 crore) as series A funding to become a leading player in the merchant specific solution, including payment processing," the Hyderabad-based start-up said in a statement here.
The two-year-old firm enables individuals and businesses to accept card payments for transactions in 20 cities across the country with about 4,000 active devices.
"Our mission is to activate second rung of the market for card payments, enabling merchants to engage and reward customers through a host of solutions," Paynear managing director Prabhu Ram said.
Following his investment for unspecified equity share, Majithia joins the company's board as a director.
"mPoS (point of sale) and mobile payments are the next big thing and have a huge market potential in the Indian payment scenario. Paynear's expertise in payment industry will revolutionise the way payments are made in the country," he said.
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A techie with two decades experience in the IT industry, including stints at TCS and Intelligroup, Majithia had also invested in multiple start-ups in India and the US in verticals like e-commerce, mobile, software and payments.
Paynear's solution is aimed at ushering in a cashless society with electronic payment to all industries and segments as an affordable and secured transaction.
"We are in a trajectory to grow our sales. Consark Consulting Service, a Bangalore- based boutique investment banking firm, acted as an advisory for this investment," Ram, who is also its chief strategy officer, noted in the statement.