homebusiness Newscompanies NewsRural payments platform IppoPay targeting $100 million revenue by FY 28
Rural payments platform IppoPay targeting $100 million revenue by FY-28
"We are targeting $100 million revenue in four years through multiple revenue sources," said K Mohan, Co-Founder and CEO at IppoPay, "Our three growth areas are payments, lending and insurance, and we expect all three areas to account for revenues in the next six months." He added: "We will grow by 30 percent year-on-year over the next four years."
Chennai-based fintech start-up, IppoPay, is targeting revenues worth $100 million by FY28, the company's CEO said, in an exclusive chat with CNBC-TV18. To hit the mark, IppoPay will have to register a year-on-year growth of 30 percent starting this fiscal, according to its internal estimates.
"We are targeting $100 million revenue in four years through multiple revenue sources," said K Mohan, Co-Founder and CEO at IppoPay, "Our three growth areas are payments, lending and insurance, and we expect all three areas to account for revenues in the next six months." He added: "We will grow by 30 percent year-on-year over the next four years."
Since it was founded in 2020, IppoPay has managed to find a niche for itself as a payments platform for small businesses in rural hamlets mainly across Tamil Nadu. "We on-boarded 50,000 merchants last year and have grown to 4 lakh merchants today," said Mohan, "Of these 4 lakh merchants, 3.6 lakh are based in Tamil Nadu." In this time, the company has also grown from 7 employees in 2020 to about 510 employees today.
IppoPay has expanded to Karnataka, Andhra Pradesh and Telangana with plans to cover more ground in South India before it expands further to rural markets up North. However, Mohan is in no hurry. "I am confident of capturing 60 percent of the tier-2 and tier-3 payments market in the next three years," said Mohan, "We want to expand slowly, and only after understanding requirements of each market. We do not believe in a Pan-India expansion plan with no focus."
Today, IppoPay registers an average daily transaction value of Rs 8 crore, with a 15 to 20 percent month-on-month growth in transaction value. "We are on-boarding 500 to 600 new businesses every day to the IppoPay platform," said Mohan."
In January last year, IppoPay announced that it raised $2.1 million in seed funding from investors like Coinbase Ventures and Better Capital, among others. However, the company isn't exactly out in the market looking to raise a Series-A round anytime soon as it expects to stay profitable in FY-24.
"We are not looking to raise funds at the moment — we are a profitable start-up," said Mohan, "My priority now is to build new products and give new solutions to merchants; we don't want to get distracted by talking to investors and raising money."
IppoPay was recently been in the news for its acquisition of RoamSoft with a view to integrate the latter's digital wallets and loan management products, and merge the already-similar cultures in both organisations.
Late last year, IppoPay made an investment of $500,000 in education payments platform iCampus Buddy, which managed fee payments across 400 schools and 1.75 lakh students, with transaction values totaling to Rs 1,000 crore. The start-up is hiring as well, prioritising job applications from tier-2 and tier-3 cities while looking to fill vacancies in technology.
First Published: Jul 17, 2023 10:33 PM IST
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