We believed from day one one that Payzippy was a distraction for Flipkart and the company instead should be focused more on growing its transaction scale.
The official note from Flipkart:
Flipkart is pleased to announce a strategic investment in ngpay, a company that has pioneered mobile payments in India.
Payments is core to Flipkart and we see this partnership giving rise to the largest mobile payments brand in India. Sourabh Jain’s expertise will help us drive innovation in payments, with features and products that provide a competitive end-to-end customer experience, to redefine the payments ecosystem in India.
While we phase out our own payments product, PayZippy, nothing changes for our customers, who will continue to enjoy all the benefits of a safe and secure payment system through Flipkart.com.
The PayZippy team has created innovative payments solutions, and the IP/technology developed will continue to be power and improve payments for Flipkart under the customer platform.
Payzippy incurred a loss of INR 6.5 lakhs for FY13 and doesn’t seem to have crossed transaction milestones. Plus, Medianama (which first reported this) notes that Payzippy name is missing from RBI’s updated list of companies that had been granted prepaid wallet license, which was the final nail in the coffin.
As far as Ngpay investment is concerned, Mobile is core to Flipkart and that’s why the rumoured Ngpay investment is a strategic move for Flipkart. Though we really wonder if there is any integration going forward or is it a round-about acquisition/acquahire of Ngpay (and bring Sourabh Jain’s expertise to the table)?
What’s NextBigWhat for Flipkart? More transactions. They need to conquer mobile. There is just no point in getting into B2B business, unless it drives more transactions (for e.g. Textile SME partnership is a big deal) on Flipkart.
Also see : ED Probe Brings Bad News To Flipkart
Recommended Read : From 4 Lakhs to Flipkart’s Billion Dollar : Flipkart Funding Timeline