State-sponsored Rajasthan Venture Capital Fund (RVCF), on Monday, said it has exited nine-year old bet in payment solutions firm Mosambee with a 19 times jump in returns alongside SIDBI Venture Capital Limited.
RVCF exited Mosambee with Rs 101 crore against an investment bet of Rs 5.25 crore. The incoming investor Pine Labs valued Mosambee at upwards of $100 million in a transaction announced last week. VCCircle exclusively reported the development on April 5.
“Like most of the fund’s bets on early stage, the Mosambee investment was also about backing the experience and talent of the founders and the vision. Ecstatic with the outcome with some more exits lined up,”said RVCF’s CEO, Suneet Mathur.
Archana Singh RVCF’s chairperson said, “The exit is a big boost to the VC ecosystem in the state and will give a lot of confidence to investors in this asset class. The exit will pave a path for RVCF’s new fund.”
Post this transaction, Mosambee’s leadership team will continue to operate independently.
RVCF first invested in mPOS solution provider in 2013 in a $1 million funding round along with SIDBI.
Two years later, in 2015, it infused more capital in follow up rounds.
RVCF is a state-supported venture fund, currently, it has three funds under management and has invested in 44 companies with a special focus on Rajasthan and other low-income states focusing on investments in SME (small and medium sized enterprises) space to create impact with returns. Other key investments of include Woodenstreet Furnitures, Medcords, Elixia Tech, Krimanshi, Freshokartz, and Fabriclore among others.
In 2015, Mosambee, operated by Synergistic Financial Networks Pvt. Ltd, had raised an undisclosed amount in its Series B round of funding from existing investors Rajasthan Venture Capital Fund (RVCF) and SIDBI Venture Capital Ltd. In February 2022, Mosambee acquired buy-now-pay-later (BNPL)-focused payment startup Benow to deepen its presence across the country.
Mosambee is also planning to step up its efforts in building MSME-focused products to facilitate digital inclusion. The company had then claimed its revenue has jumped from Rs 2 crore to around Rs 140 crore in four years. Amidst the pandemic, the payments company claimed it had registered 25% growth during the fiscal year 2021 and plans to further achieve 50% growth in FY22.