MSwipe looks for a lifeline as it runs out of cash

Covid-19 has impacted businesses in a big way. While companies that have the runway are waiting for normalcy, those who are left with just a few months of cash in the bank are looking to consolidate. After travel and hospitality, the point of sales (POS) business has been hit hard and MSwipe is on the block, scouting for a home. 

According to three Entrackr sources, Mswipe is looking to get bought out as it is left with just a few months of runway. “MSwipe has been approaching several companies including Pine Labs, Paytm, BharatPe and others to get acquired,” said one of the sources on condition of anonymity. “It is left with 3-4 months of runway. Their existing investors are unlikely to put in follow on capital.”

MSwipe’s existing investors include Falcon Edge, B Capital Asia, Epiq Capital and Matrix Partners. 

The struggle of MSwipe comes at a time when the POS ecosystem in India has been under stress due to a Covid-19 induced nationwide lockdown. The business in this space is almost at a standstill.

The sources further added that MSwipe is seeking a buyout for about $200 million. “It’s unlikely that someone will pay such an amount when everybody is trying to conserve cash and extend the runway of their companies,” added the second source who too requested not to be named.

Founded in 2011, Mswipe is an independent merchant acquirer and payment services provider that makes mobile PoS (mPOS) devices for merchants.

It also has a payment gateway for processing payments online and an automated payment settlement system for merchants via UPI, Google Pay, PhonePe, Bharat QR and BHIM.