BalanceHero, the startup behind the popular Indian digital payments app True Balance, has roughly 60 million registered users and recorded $100 million in gross merchandise volume (GMV) sales.
Reporters, citing company spokesperson Yongsung Yoo, said the startup has raised $42 million in venture funding. What’s more, the maker of the True Balance app — which is a digital wallet aimed at helping users pay mobile and electricity bills — is close to being profitable.
The company competes against Paytm, the leading digital payments company in India, as well as MobiKwik, Google, Amazon, and Flipkart. The company is going after consumers in tier 2 and tier 3 markets in India. They have limited access to the internet and less financial power. To get the word out about its services, BalanceHero relies on existing customers. It gives what it calls digital agents rewards — including cash back and other perks, according to reports. It has morphed into a side gig for many of BalanceHero’s customers and an effective way to get the word out.
The spokesperson told reporters that later in 2019 the startup will launch an eCommerce store on its app and provide members with access to insurance. It’s in the final stages of raising $50 million to $70 million in a new round of funding, noted the report. Yoo said that round is slated to close in July.
India has emerged as a hotbed of opportunity for digital payment companies. It’s also seeing fierce competition, with startups and traditional players vying for consumers’ business. Earlier this month Paytm and Citigroup announced a partnership to launch a credit card. Dubbed Paytm First Card, it gives Indian consumers 1 percent cash back on all transactions. For Paytm, the new card is aimed at helping it stand out from its digital payment rivals, which are growing seemingly every day. Paytm became a huge player in the digital payments market back in 2016, after the Indian government removed high currency notes from the financial system to fight fraud and vowed to move the country toward digital payments.