One97 Communications Ltd which owns payments app Paytm on Tuesday announced the acquisition of New Delhi-based technology start-up Cube26. The transaction size was not disclosed.
A Paytm statement said the acquisition will help the company upgrade user experience over its mobile platform. Cube26 develops customized Android OS for original equipment manufacturers, and it is currently building a games and apps store by connecting India-based developers directly with smartphone users. The app store also helps developers monetize their content.
Cube26 is backed by Tiger Global Management and Flipkart. It had raised $7.7 million from both investors in 2015. The start-up was founded in 2012 by Saurav Kumar, Abhilekh Agarwal, and Aakash Jain. It had around 140 employees in August 2016, according to a VCCircle report.
According to Madhur Deora, chief financial officer of Paytm, the company will work closely with Cube26 team to add more social engagement features on Paytm’s products and services using the acquisition.
“We are excited to welcome the Cube26 team on board,” Deora added in the statement.
“Our team has been building technology products that are used by millions of users. I believe our diversified experience in creating smarter products across software and hardware segment will help add value to Paytm and to several of its products & services,” Saurav Kumar, chief executive officer, Cube26.
The acquisition comes just days after Paytm claimed to have 120 million monthly active users on its in-app messaging feature called ‘Paytm Inbox’. The company also said that it will focus more on regional content for making its app more popular across small cities and towns.
Paytm had also made two acquisitions in recent months. In December 2017, Paytm acquired Nearbuy and Little, two platforms that focus on local restaurants and commercial establishments. Paytm later merged both entities and made an undisclosed investment into the resultant entity.
Source: Mint