Lightspeed Venture Partners Leads Rs. 500 Million Investment Into Essel Group's ItzCash Card Ltd.
Returning investors Matrix Partners India and Intel Capital join the financing for India's largest pre paid cash Card Company
Tweet-- Lightspeed Venture Partners, a leading global venture capital and growth equity firm, has led an investment of Rs. 500 million in Itz Cash Card Ltd., India’s largest multi- purpose pre-paid card company, along with existing investors Matrix Partners India and Intel Capital. The investment will be used by ItzCash Card to further expand its product portfolio and diversify its business, including venturing into the retail payments space.
With this investment,Mr. Bejul Somaia, Managing Director, Lightspeed Advisory Services India Private Ltd.will be joining the board of Itz Cash Card Ltd. The amount invested will help ItzCash Card to scale the existing business and tap new products and market segments.
Speaking on this occasion, Mr. Ashok Goel, Chairman, Itz Cash Card Ltd.said, “The investment by Lightspeed Venture Partners further validates the strong business model and growth of ItzCash. This is the second round of PE funding that ItzCash has received in the last two years, the previous one being USD 10 million from Matrix Partners and Intel Capital. Both the existing investors are also participating in this round.”
ItzCash prepaid cards offer cashless payment solutions for individuals and businesses across physical, internet and mobile channels by providing a convenient, secure and efficient alternative to cash. Importantly, ItzCash prepaid cards serve as a financially empowering payment instrument for the under-banked or unbanked population of the Country.
Mr. Bejul Somaia, Managing Director, Lightspeed Advisory Services India Private Ltd.said, “ItzCash Card is a unique and innovative product that offers convenient payment solutions for multiple services.We believe there is significant growth potential for this product given that cash accounts for approximately 97% of the country’s retail payments, which exceed $500 billion. We are impressed by the company’s unique business model as well as its strong growth trajectory and future prospects. The strength and commitment of the management team, the quality of the company’s merchant partners and the reach of the company’s distribution channel, have all helped ItzCash establish a clear leadership position in the non-bank payments industry space.”
Lightspeed Venture Partners' mission has been to partner with early and growth stage technology companies possessing the vision, energy and integrity required to build large sustainable enterprises. Lightspeed Venture Partners has invested in more than 100 technology companies over the past two decades.
Notes to Editor
About Itz Cash Card Ltd.:Itz Cash Card Ltd., India’s only “Multi Purpose Prepaid Cash Card” part of the Essel Group established in 2004 today has an annual turnover of Rs.1700 crores. ItzCash is another successful venture that innovated the entire paradigm of payment solutions across the web and the mobile bringing payment solutions to the non-bankable population. The Card offers a portfolio of customized e-commerce & m-commerce solutions in the B2B & B2C space. The card‘s salient features include its services, technology, safety & security, reliability and ever-increasing business alliances. ItzCash enjoys premium brand status in the highly competitive local markets. The company’s products have been internationally recognized and it went on to win the PayBefore awards for the second for the second consecutive year.
Itz Cash has more than 5000 merchants and a spread across 1800 locations including cities, towns and rural India The tie-ups across service sectors facilitate the multi-utility aspect of the card. ItzCash has over 20,000 ItzCash franchisees branded as “ItzCash World” and 180,000 outlets in 1800 Tier I & II towns in the country under the brand name “ItzCash Point”.
Itz Cash Card’s various tie ups including IRCTC for rail booking, Municipal Corporation of Greater Mumbai (MCGM) to facilitate online payment of property Tax, water Bill in Mumbai and launched Octroi Silver Cards for traders and truckers to collect Octroi at the Octroi Nakas. It has also tied up with Municipal Corporation of Delhi (MCD) for paying property tax in Delhi.
Lightspeed India
Lightspeed manages over $2 billion of committed capital and invests across the U.S., China, India, and Israel. We are currently investing out of Lightspeed VIII, an $800 million fund raised in early 2008. Lightspeed has invested in direct and cross-border Indian companies since 2004, and has an Indian advisory team with offices in Bangalore and New Delhi.
Lightspeed invests across stages and sectors in India, with investment sizes in the range of $2 million to $25 million. Our principal interest is to provide growth- or early-stage capital to talented entrepreneurs and management who seek to disrupt or transform large markets in the domestic economy. We invest in technology-led businesses as well as in non-technology opportunities in sectors such as advertising and media, business services, financial services, healthcare, education and retail.