Startup City Magazine

e-Commerce Giant Flipkart Successfully Acquires Payment Firm FX Mart

Bengaluru: India’s leading e-Commerce giant Flipkart has successfully acquired payment solutions startups FX Mart for Rs.45.4 crore. As a part of this deal, two senior executives from Flipkart will be joining the company’s board. This is Flipkart’s second acquisition in the online payments space; the previous one being the acquisition of Singapore-based Next Generation Payments Pvt. Ltd. wherein no financial terms were disclosed. The deal by Flipkart is seen as a move to offer its own digital wallet as a payment option and avoid paying commission to external wallet providers.

FX Mart, owned and operated by FX Mart Pvt. Ltd. was founded by Amit Narang and is headquartered in Chandigarh. The company offers wide range payment services like electronic payments, remittance, foreign exchange and travel related business. It also owns coveted prepaid licence issued by Reserve Bank of India (RBI) on semi-closed prepaid instruments last year and had previously received the approval for full fledged money changing (FFMC) in May 2013. Since its inception in 2012, the company has expanded its presence to eight offices with an agent network of over 1,000 locations across India.

Recently, taxi service firm, Ola had also started its own wallet service name ‘Ola Money’ for auto rickshaws, enabling its users to make payments online. Flipkart’s arch rival Snapdeal is also working on a developing a payment platform of its own which is expected to be launched by the end of this year.

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