FTCash, a company that facilitates electronic payments and lends to small and micro merchants, has secured Rs 1 crore in pre-series A funding from the IvyCamp platform.
IvyCamp, an initiative of IvyCap Ventures (also the lead investor in the round), is a platform of alumni networks including IITs, IIMs, BITs and ISB to promote innovation and entrepreneurship that connects startups, innovators, mentors, institutes, corporates, investors, and incubators.
“The funding is primarily for aggressive customer and merchant acquisition along with product development. FTCash enables merchants to accept electronic payments without any additional hardware or POS device,” said Sanjeev Chandak, chief executive of FTCash.
The transaction data from the payment platform is leveraged to provide institutional finance to merchants like small dairy owners, newspaper vendors, car garages, ‘kirana’ stores, etc.
“These merchants are currently at the mercy of money lenders for loans. FTCash enables electronic payment acceptance using their existing bank account and a basic mobile phone,” Chandak said.
Chandak, a cofounder of FTCash, is an alumnus of IIT Kharagpur and Wharton Business School, and was most recently deputy CFO at Deutsche Bank (India). The other cofounders are Deepak Kothari and Vaibhav Lodha. Kothari is an alumnus of Shri Ram College of Commerce, a chartered accountant and management consultant having worked at Grant Thornton, KPMG and Deloitte. Lodha is an alumnus of Harvard Kennedy School of Government and has worked as director of Xprize, Lodha Group, at the World Bank and LGT Capital Partners. The founders together hold the majority shares in the company.
“FTCash funding is amongst the first few investments of IvyCap Ventures Trust Fund II and forms part of our early stage strategy, through which we have allocated Rs 60 crore for early-stage investments via the IvyCamp platform.” said Vikram Gupta, founder and managing partner of IvyCap Ventures.