Paytm has acquired Bengaluru-based smart-savings management startup Balance.Tech for an undisclosed amount. The startup builds smart products to inculcate savings habit among its users The 6 members of the start up will join Paytm’s product and design teams. Through this acquisition, Paytm plans to utilize the product interface developed by the startup.
Balance.Tech was founded in 2016 by Ankit Kumar and Abhishek Malik, alumni of IIT-Kanpur. It has been backed by Rainmatter, a fintech incubator of stock-broking firm Zerodha which invested INR 1.5 crore (around $233,000) in May. On the other hand, Paytm is the largest Indian digital goods marketplace founded by Vijay Shekhar Sharma. The company is under One97 Communications Ltd., and has separate companies for its digital payments and e-commerce business. Paytm Payments Bank Ltd, which also owns its digital wallet is responsible for spreading its financial services business.
One97 has more than 4500 employees with headquarters in New Delhi and offices in Mumbai, Bengaluru, Pune, Chennai, and Kolkata and global presence in Africa, Europe, Middle East and Southeast Asia. Paytm is backed by many well known investors like Japan’s SoftBank Group Corp, China’s Alibaba Group, Sapphire Venture, Silicon Valley Bank, and multi-stage investment firm SAIF Partners.
One97 also has its own One97 Mobility Fund (OMF) which is used to invest in new mobile companies. Another one of Paytm's parent company's acquisition was Delhi-based mobile technology startup Cube26 Software Pvt. Ltd. in June. The company has been spreading its financial services business with the help of its unit Paytm Payments Bank Ltd, which also contains its digital wallet.