Shopclues wants to ease digital payments for merchants by acquiring payment start-up Momoe

Shopclues, which recently entered the coveted billion-dollar valuation club, is busy talking to the payments start-up Momoe for in order to achieve its growth plans via acquisitions. The development was shared with ET by three people aware of the matter.

If Shopclues acquires Momoe, its payments backend for its fast-growing merchant base would be strengthened. Because a major part of Shopclues’ merchant base is based in India's small cities and towns, this payment backend would help people who don’t have strong internet connection.

However, Momoe has multiple term-sheets and is in talks with other potential suitors too. When contacted, Momoe CEO Utkarsh Biradar disclosed that the companies have not yet reached an agreement.

Bengaluru-based Momoe was founded in April 2014 by Biradar along with Karthik Vaidyanathan, Ganesh Balakrishnan, Neelesh Bam and Aiman Ashraf. Customers can use the mobile app to make payments while dining out, shopping or commuting at more than 3,000 brick-and-mortar merchants in Bengaluru and Pune.

Momoe is different than other payment apps like Paytm and Mobikwik, which facilitate cashless payments with a virtual wallet that stores a fixed amount of money, since it works by linking credit and debit cards and net banking.

Image source