Fintech startup Mylapay, focused on payment enablement, has secured INR 4.6 crore ($550K) in a seed funding round. The venture capital firm CDM Capital led the funding, with participation from Saison Capital and 77 Capital. This funding positions Mylapay for significant growth in the competitive fintech industry.
Established in 2019 by industry veterans Mohanraj Ravi (CEO), Santhanakumar Dhanabalakrishnan (CTO), and Sundar Balasubramanian (CFO), Mylapay tackles key challenges in the payment sector. These challenges include high transaction failure rates and complexities in payment operations. Mylapay, the company’s unified cloud-based platform, seeks to revolutionize payment processing by offering seamless and secure solutions.
Mylapay plans to use the newly acquired funds to enhance its cloud-based infrastructure with advanced security measures and strategically broaden its business operations. The company has demonstrated notable progress in the last three years, achieving a 70% growth in FY 2023. For two consecutive years, it has also maintained sustained positive earnings performance before interest, taxes, depreciation, and amortization (EBIDTA).
Establishing crucial alliances with major payment aggregators and gateways in India, Mylapay has also entered the international market, serving a client in the UAE. Given the global card payment processing market’s valuation at $410 billion, Mylapay sets its sights on reaching a $25 million Annual Recurring Revenue (ARR) in the next three years, aiming for global expansion.
Mylapay has recently obtained approval from EMVCo for its EMV 3-D Secure Server Product, known as ‘Mylapay Secure.’ This product showcases the latest version, 2.3.1, designed for global online payment authentication.
Mohanraj Ravi, Co-founder and CEO of Mylapay expressed enthusiasm about the support from prominent investors, stating, “We are delighted to have the backing of the prominent investors who come with industry expertise, infusing both capital and confidence into our ambitious mission to redefine the payment processing.”
Davesh Manocha, Founder, and Managing Partner of CDM Capital, added, “The traditional payment processing systems are undergoing significant changes to adapt to the evolving ecosystem. The Mylapay platform is playing a key role in this transition, with several major payment players already partnering with them.”
Mylapay strives to transform its product platform into a comprehensive cloud-based tech ecosystem. The goal is to empower global payment aggregators and banks by offering a complete suite of payment processing capabilities through a simplified API connection.