Financial Software & Systems (FSS), an online payment technology firm, has raised around $57 million from Premji Invest. This investment firm is owned by Mr. Azim Premji, Chairman of Wipro Enterprises. FSS aims to utilize the funds for enabling innovations in digital payments. This latest round marks the fourth successful funding round for FSS.
FSS will deploy the funds for achieving the following goals:
- Strengthen software product portfolio to build up IP stack in payments
- Consolidate its market position in services such as transaction switching, ATM & PoS managed services & deployment
- Achieve growth in areas like fraud & risk management and wholesale payments that will include payment process mechanisms like RTGS, NACH, NEFT, IMPS and SWIFT.
FSS has been known to extensively support retail & wholesale payments through a portfolio of software products. It also provides services and solutions to banks, financial institutions, merchants, government and other verticals. Its client portfolio consists of over 100 banks, retailers, payment processors and prepaid card issuers across regions spanning North America, UK/Europe, Middle East, Africa and Asia Pacific.
The company’s hosted payment business called ‘FSSNeT’ is the largest independent processor in India and provides ATM/ POS switch services, card issuance and management, wholesale payments, corporate payments, ATM managed services, POS services including mobile PoS and micro ATMs, internet payments, mobile banking and payments and financial inclusion services.
Today, FSS powers 6 million transactions per day & powers payment solutions across 7000 cities and villages in India itself. No doubt it has attracted such prominent investors.
“We are excited to partner with FSS through this investment and support the next phase of growth opportunities for the company. We believe that the leadership team at FSS has built an organization on a foundation of innovation and integrity that has made it a trusted partner to its stakeholders especially the Banks, Financial Institutions and Payment Processors. The payments landscape is undergoing technology, scaling up / usage up-gradations & outsourcing and we expect FSS to play a leading role in this transition through its product / services capability and existing partnerships with banks and other verticals where payments originate,” said Prakash Parthasarathy, the Chief Investment Officer at Premji Invest.
The company aims to provide more enhanced services for e-commerce & m-commerce industries, financial inclusion and remittance businesses. The company has plans to expand its hosted services business and also strengthen its products/IP portfolio. This recent funding also gives the company opportunities to extend its reach in global markets. The funding would also reinforce the company’s diverse capabilities both in India and globally. This funding has come at a time when payment markets, both in India and overseas, are positioned for exponential growth.
“FSS, with its in-depth payments domain expertise built over 23 years with proven credentials across payments landscape, is uniquely positioned to become a global payments industry leader. The latest round of funding from Premji Invest, along with the active support of our existing investors, NEA and NYLIM Jacob Ballas, will enable us capitalize on the emerging opportunities in digital payments much faster and consolidate our position as a global leader in payments. In the next 18 to 24 months, the Company plans to go public. The fact that FSS has consistently attracted PE investments over the past 2 decades and this latest investment from Premji Invest will enable us to prepare for the IPO” said Nagaraj V Mylandla, Founder and Managing Director, FSS.