Google-backed DotPe, founded by PayU India cofounder Shailaz Nag, is raising Rs 434.5 crore (or roughly $54.4 million) in funding led by Singapore’s sovereign fund Temasek.
DotPe provides small and medium enterprises with a full-stack solution to set up an online payments and delivery system. It also provides store management and marketing management tools to these businesses.
The company’s board has passed a special resolution in an extraordinary general meeting held earlier this week for the startup to raise the amount.
As per regulatory documents accessed by ET, Temasek - through investment arm V-Sciences Investments - is investing Rs 150 crore (or $18.7 million). In addition, Naya Global, MUFG Bank, and PayU Fintech investments will be investing roughly Rs 82.5 crore ($10.3 million), Rs 75 crore ($9.3 million) and Rs 91.7 crore ($11.4 million), respectively.
Existing investor InfoEdge Ventures, through IE Venture Fund, is also doubling down on its investment and investing Rs 35.3 crore (or $4.4 million).
DotPe cofounder Nag declined to comment on the round.
The new round comes after the startup had raised $27.5 million in funding in March 2021. The round had seen its early investor PayU, the payments and fintech business of Prosus, and InfoEdge Ventures doubling down on their seed investments, along with participation from Google.
Nag and former PayU executives Gyanesh Sharma and Anurag Gupta founded the startup in 2019.
Earlier in 2020, the company had also raised $8 million in seed funding led by PayU and Fosun RZ Capital, and participation from Info Edge Venture Fund, Snapdeal co-founders Kunal Bahl, Rohit Bansal and Citrus Pay co-founder Amrish Rau.
As of February this year, DotPe had onboarded close to 7.5 million merchants on its platform across tier-1, -2 and -3 cities.