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Chennai-based neobanking and unified payment acquiring solution provider CredoPay on Wednesday announced that it raised a Pre-Series A funding round of $5 million from EzSwype LLC and Zent International Limited. 

As per an official statement, the funding will be used for product development, client acquisition, and marketing.

CredoPay, a fintech enabler, offers a plug-and-play integrated platform for payment acquisitions and payment processing, among a host of other solutions to banks, neobanks, payment facilitators, merchant acquirers, fintech companies, and ISOs. The startup manages the complicated payment processing lifecycle for its clients through advanced platform-as-a-service (PaaS) and software-as-a-service (SaaS) products.

“Our value proposition to our clients is faster speed-to-market, lower cost of installation and operations and transaction decline rates of less than 1 percent. We registered a GPV of Rs 550 crore per month with an estimated revenue of Rs 20 crore in FY 2021-22 and plan to grow by at least 3x annually. We are targeting to increase our client count to 100 and merchant base to 90,000 with a GPV of Rs 2,000 crore per month by FY23,” said Dore Swamy, Co-founder and CEO of CredoPay.

CredoPay currently has 35 clients with a merchant base of 45,000 merchants on its platforms. Its clientele includes two large private banks, fintech companies, and merchant acquirers among others. At present, the company has operations in India, South Africa, Latin America, Qatar, Oman, and Sri Lanka, and plans to expand to North America, South East Asia and Africa in the coming years.

“Our PaaS and SaaS platforms are robust, secure and scalable and provide on-demand capacity. Our clients can focus on their business expansion plans without worrying about capacity augmentation,” added Captain Siva Raja Sekhar Padala (Retd), Co-founder and CTO of CredoPay.

Currently, CredoPay processes two million transactions per month on its PaaS and SaaS platforms and has plans to increase it to six million transactions per month by next year. The company operates mainly in Tier-II and Tier-III cities and 80 percent of revenue comes from semi-urban and rural markets.

“We strongly believe that the exceptionally robust fintech products CredoPay has developed will become the payment solutions of choice in the Indian and International markets,” said Dr Shailesh Upreti, Founder of EzSwype LLC, a New York-based fintech company which is leading the Pre-Series A investment round in CredoPay.

“Our investment in TransTrac reflects our conviction in the founder-led company’s team and its products. We see immense potential for the product in the growing digital finance space and that is one of the key reasons why we decided to partner with Credopay,” added Mohan Sebastian, COO of Zent International Limited, the investment arm of a reputable GCC business family.