ShopClues acquires mobile payments company Momoe

ShopClues is an emerging Indian online retail shopping website and is now headquatered in Gurugram, India.

The company was founded in July 2011 by Sanjay Sethi and Sandeep Aggarwal and is an Indian subsidiary of Clues Network Inc., a US Corporation.

Sanjay Sethi has previously worked for companies like Tradebeam, IIS Infotech, Steel Authority of India and eBay, as a Global Product Head.

Online managed marketplace ShopClues raised a fresh round of funding led by sovereign wealth fund GIC Pte Ltd and its existing investors Tiger Global and Nexus Venture Partners.

The valuation of the e-commerce platform rose to more than $1.1 billion and became a 'Unicorn.'

The company's move to raise capital is expected to be a strategic step towards an initial public offering in 2017.

ShopClues, an online marketplace, acquired Bengaluru-based startup Momoe in an attempt to build a payments business.

The deal will help ShopClues in forming an office in the startup capital and all 5 Momoe founders are likely to join high management team in sections of design, corporate development and technology.

The deal size is $10-12 million, which will be paid in both cash and stock.

Momoe is a Bangalore based start-up company which revolutionizes payments and customer relationship at real world outlets such as restaurants, grocery stores, medical shops etc.

The app enables a user to pay bills with their smartphones at any Momoe enabled outlet such as restaurants, grocery stores, medical shops etc.

Momoe app was launched in August 2014 and has 90,000+ users across all platforms.

A senior ShopClues executive said that, ''"The Momoe deal is not only to get a play in the wallet business, but it will have a larger role in the unicorn's future."

Momoe will enable ShopClues' merchants with mobile banking, while offering a wallet service like that of Snapdeal and Paytm.

Momoe will help ShopClues build what Rupee Power and Freecharge are doing for Snapdeal.