Prizm Payments, a Chennai-based technology infrastructure provider in electronic payments space, has acquired the point-of-sales (POS) platform of Reliance Money in an all-cash deal. The value of the transaction was not disclosed.
The deal allows Reliance Money to exit the PoS space as its core business is selling financial products. For Prizm, the deal means consolidation as it is engaged in setting up ATMs and PoS networks for banks and retailers for the last four years.
Prizm, which has investments from Sequoia, is on a shopping spree and has set its sights on acquiring ATMs and POS networks. It has already initiated talks with a few banks. The company is preparing to raise a war chest of Rs 200 crore for chasing M&A deals.
“There is momentum in the market for inorganic growth. We will approach investors for additional funds. We plan to raise Rs 200 crore in the next two years,” Loney Antony, MD, Prizm Payments, told VCCircle.
A number of banks are willing to sell their ATM/PoS networks to third party service providers. For instance, in July, Yes Bank tied up with the American payment processing company First Data Corporation (FDC) for an innovative ATM deal, where the bank will pay transaction-based charges. ICICI Bank has initiated a similar plan in June, however, the deal is not finalized yet. Prizm is planning to roll out ATMs and PoS networks across the country mostly on a transaction fee model, which will help banks avoid capital expenditure.
Prizm offers ATM/PoS services in 50 locations.