Compared: Payment Gateways in India [2014 Edition]

Back in 2013, along with the launch of Flipkart’s payment gateway service PayZippy, we had done an overview comparison of payment gateways, with respect to their pricing plan and services offered in the country. Its has been 6 months since our coverage, much has changed.

Hence we have decided to do an update on this comparison and this time around we have added 2 more services, bringing the total number of services covered to 7.


Plan Standard Promotional
Setup Fee (Rs) 0 0
Debit Card 0.75% for Transaction Value upto Rs. 2000
1% for Transaction Value above Rs. 2000
0.75% for Transaction Value upto Rs. 2000
1% for Transaction Value above Rs. 2000
Netbanking 3.5% for Transaction Value between Rs. 0-5 lakhs.

3.25% for Transaction Value between Rs. 5-10 lakhs.

3% for Transaction Value between Rs. 10-25 lakhs.

2.5% for Transaction Value between Rs. 25-100 lakhs.

For Transaction Value above Rs. 1 Cr (Custom Quote)

Credit Card 3.5% for Transaction Value between Rs. 0-5 lakhs.

3.25% for Transaction Value between Rs. 5-10 lakhs.

3% for Transaction Value between Rs. 10-25 lakhs.

2.5% for Transaction Value between Rs. 25-100 lakhs.

For Transaction Value above Rs. 1 Cr (Custom Quote)

American Express 3.5% 1%
International Credit Card 1.5% over and above domestic credit card pricing 1%
AMC (Rs) 0 0
Note* Promotional Pricing is for sign-ups before 31st March, 2014 and is valid till June 18th, 2014. Taxes apply to all above charges.



Plan Popular Privelage
Setup Fee (Rs) 0 30000
Debit Card 1.25% 1.25%
Netbanking 4% 2.5%
Credit Card 3.5% 2.25%
American Express / JCB 5% 3.6%
Cash Card 5% 3.6%
CC Avenue Phone Pay 0.5% + Above TDR 0.5% + Above TDR
AUSC/AMC (Rs) 1200 (from 2nd year) 3600
Note* Annual Software Upgradation Charges (ASUC) is charged on a per month basis payable in advance every year in April. Taxes apply to all above charges.



Plan Introductory Offer (6 months) Easy Starter Level Up Power Packed
Monthly Charges (Rs) 1 7000 10000 15000
Setup Fee (Rs) 0 0 0 0
Debit Card 1.25% 1.25% 1.25% 1.25%
Netbanking 2% 2% 2% 2%
Credit Card 2% 2% 2% 2%
American Express 2.75% 2.75% 2.75% 2.75%
AMC (Rs) 0 0 0 0
Notes* The above mentioned plan is for monthly transactions numbering between 1000 to 5000. For plans with monthly transactions numbers between 1-100 & 100-1000, TDR is flat 2.5% on all transactions, only the monthly charges vary. Plan monthly charges vary depending on transaction number chosen. Monthly charges payable upfront. For plan with more than 5000 transactions per month, custom quote facility is available.


payuPayU India

Plan Economy Silver Gold Platinum
Setup Fee (Rs) 6000 12000 24000 36000
Debit Card 0.75% for Transaction Value upto Rs. 2000.
1% for Transaction Value above Rs. 2000.
0.75% for Transaction Value upto Rs. 2000.
1% for Transaction Value above Rs. 2000.
0.75% for Transaction Value upto Rs. 2000.
1% for Transaction Value above Rs. 2000.
0.75% for Transaction Value upto Rs. 2000.
1% for Transaction Value above Rs. 2000.
Netbanking 4.9% 3.9% 3.25% 2.75%
Credit Card 4.9% 3.9% 3.25% 2.75%
American Express 4.9% 3.9% 3.5% 3.25%
EMI 4.9% 3.9% 3.25% 2.75%
Cash Card 4.9% 3.9% 3.25% 3%
Release on Delivery (COD) 2.9% 2.9% 2.9% 2.75%
AMC (Rs) 2400 2400 2400 2400



Plan Bronze Silver Gold Platinum
Setup Fee (Rs) 12000 18000 24000 30000
Debit Card 3% 1.75% 1.5% 1.25%
Netbanking 4% 3.5% 2.75% 2.5%
Credit Card 4% 3.5% 2.75% 2.5%
American Express/JCB/Diners 5% 4.5% 4% 3.75%
EMI NA NA 3.75% for 3 months.
5.75% for 6 months.
3.75% for 3 months.
5.75% for 6 months.
MMC (Rs) 600 500 400 300
Notes* MMC will be waived in Silver, Gold & Platinum plans if Transaction Volumes Processed is above Rs. 300,000 per month. EMI options currently available through Citibank, HDFC Bank & ICICI Bank. Taxes apply to all above charges.



Plan Gold Platinum Corporate
Setup Fee (Rs) 10000 20000 35000
Debit Card 1.25% 1.25% 1.25%
Netbanking 4% 3% 2%
Credit Card 4% 3% 2%
AMC (Rs) 2400 2400 2400
Notes* Taxes apply to all above charges.



Plan Starter Express
Setup Fee 10000 30000
TDR 3% for Monthly Transaction Value upto Rs.5 lakhs
2.5% for Monthly Transactiona Value above Rs. 5lakhs
AMC (Rs) 2400 (From second year) 0


*Disclaimer: PayUMoney is an advertiser at NextBigWhat.

Recommended Read:

Costs of Setting up an E-Commerce Business in India [Analysis]

Compared: Shopify Vs Zepo Vs BuildaBazaar [Set up Your E-commerce Store]

In 2-3 Years, Flipkart Will be Largely an M-Commerce Company: Sachin Bansal [Interview]

With a war chest of $360 mn and a growing customer base, home grown ecommerce company is now looking to stay one step ahead of competition. Although the company says that its strategy is dictated by customers and not competition, rivals like Amazon are trying to lure customers away. Notwithstanding the pressure to turn profitable, the battle for customers, is one which Flipkart can’t afford to lose. In this interview, Sachin Bansal, the co-founder & CEO of Flipkart talks about it’s plans to open up different parts of the e-commerce platform for third parties and its increasing focus on mobile as India becomes increasingly mobile. Edited Excerpts.

Sachin Bansal
Sachin Bansal, CEO & Co-Founder, Flipkart

What are some of the milestones for Flipkart last year?

Everyone was skeptical if we’d be able to sell fashion merchandise on our website. But we’re making good progress. When we started last year, it was very small for us but now we are very close to the industry leader.

The company is now very well capitalized and we are able to take a very long term view. So we don’t have to make tradeoffs that we’d have otherwise made. For instance, now if we need to invest a large amount in technology for the next 3 years, we will do that. Earlier, we would have thought lets invest for one year and see how it goes.

We also opened our platform for sellers. Right now there are about 1000 sellers. We want to have lakhs of them.

NextBigWhat for Flipkart in 2014?

We will focus on , our payments platform, e-books and our mobile experience. Category expansion is also on our minds. In 2-3 years, we will become largely an m-commerce company. We will also have a larger range of products. (Read: Flipkart’s Mobile Strategy)

On the technology front, we will open up different parts of our platform for sellers. PayZippy was an example of it. For instance, we could think of inventory management or accounting for sellers. Our supply chain solutions will also become available for 3rd party sellers.

We will also look at using the data we generate to create a competitive advantage. Automation of certain functions is also on our minds. (Read: Engineering the Flipkart Story)

Will you acquire companies to grow? Or will you build on your own.

Given enough time we can build it ourselves. But time is critical. It all depends on the team, the product and cultural fit.

What are some of the regulatory challenges you face?

We’d love to see a uniform tax code across states. There should be one way to look at taxes.

You were looking at $1 bn in Gross Merchandise Value by 2015, how far have you come?

We are more than half way through. Hopefully, we will reach that target much sooner.

Sachin Bansal at UnPluggd

A Look at the Real Gold Diggers in India’s Ecommerce Industry

When the gold rush happened, toolmakers made more money than the miners. India’s Ecommerce gold rush seems to be no different.California_Goldrush

With Indian ecommerce companies trying several interesting initiatives right from  same-day-delivery to bringing local shops online, these companies are looking for tool makers to help them grab more customers and serve them better.

Who is making minting money? For sure, not the ecommerce companies. They are still struggling with margins, as the focus is on getting new customers and optimizing logistics.

The real gold diggers are the products that power these ecommerce companies – be it cloud telephony or social apps, the gold diggers have shown strong growth riding on India’s Ecommerce growth story.

In no particular order, NextBigWhat team shares a few gold diggers who provide services and products to ecommerce businesses:

Customer Support

Kookoo, Exotel, Knowlarity

Web Apps

Webengage, Viralmint, SocialAppsHQ, Unbxd and Unicommerce.

Logistics/Payment Gateways/Misc

Delhivery, Kartrocket, GreyOrangeRobotics, Vinculum, Ezetap, Zipdial and MartMobi. Payment gateways like PayUPaisa, CCAvenue, EBS and the newly launched PayZippy.

DIY Ecommerce sites

Shopify, Martjack, BuildaBazaar, Zepo

The Big Beneficiaries?

Indian ecommerce companies are spending a huge chunk of VC money in buying media and the biggest beneficiaries are Google (Adwords), Facebook and the TV/print industry.

Close to $120mn investor money is riding on toolmakers and while the ecommerce market will go through it’s own ups and downs, these toolmakers surely are having a ball!

The team at martmobi has prepared this cool infographic depicting the technology landscape of India’s Ecommerce industry

Indian eCommerce Technology Map
[Image credit: wikipedia]

Weekly Summary: Indian Startups Rise to the Hardware Challenge; Bootstrapping A Tech Startup In India & More

The new year got  off to a great start with a slew of startup fundraising and acquisition announcements. The streak seems to be continuing this week too, with one of the highlights being BankBazaar raising $13 mn funding from Sequoia Capital & Walden.

This week, we also covered some insightful trends on the hardware product startup ecosystem in India. One such interesting startup is Grey Orange Robotics, who is trying to save e-commerce companies’ precious hours and money using their technology.

We also posted some interesting articles from our guest authors, that includes a guide to foreign startups looking to incorporate in the USA.

For all those who missed out on the action on NEXTBIGWHAT last week, do go through our weekly recap below.

Weekly Summary
Weekly Summary (image credit: shutterstock)

Indian Startups Rise to the Hardware Challenge [Rise of the Machines]

Facebook’s Little Eye Labs Deal: What Founders Should Know About M&A

With Worker Robots, Grey Orange Robotics Wants to Take E-commerce Warehouses to the Future

How To Bootstrap A Tech Startup In India: The Wingify Journey [UnPluggd]

Why India’s Bitcoin Millionaires Are Hiding

Tier 2 Cities Are Major Buyers of Lingerie Online: Richa Kar, Founder, Zivame

Quick Guide to Foreigners Incorporating In USA [Explained]

This Startup Shuts Down. Shares It All [Goldmine for Entrepreneurs]

The Best of SMEthing, Where Startups & SMEs Meet Great Service Providers

Of Typography And Serif vs. Sans-Serif Debate [How Typography Affects Readers]

——— Channel : Indian Startups / Resources

IntuGine Wants to Take on Gesture Control Market With Nimble; Works From 15 Feet Away

A Tale of 2 Entrepreneurs. One Serial. Another Boring.

Eashmart Takes a Different Approach to Mobile POS; Your Phone is the POS

Keep Track and Auto Dial Scheduled Calls with Call Looper

Canvass Brings An All in One Tool For Marketers With Built in Analytics & Automation

Quantified Self Meets Remote Health Monitoring at Sensory Health Systems

Pune-Based RoomLion Looks to Ease Search for Short-Term Rentals

Qualcomm QPrize 2014: Indian Startups Here’s a Chance to Win Upto $250K Funding

Microsoft Launches Microsoft Academia Accelerator In India

——— Channel : India Online

Official Sunny Leone App Launched In India

AAP Govt Opposes FDI in Retail; Ban In Delhi

And Now, Order Street Food Online on Tradus [Local Commerce Going Online]

Mumbai, Now Get Your Orders Delivered in 9 Hours by eBay

One97 Communications to Launch m-Commerce Retail Marketplace

——— Channel : APPS/ Stuff

Is Reporting Really Analytics?

BitQuick Launches Indian Bitcoin Exchange Amidst Regulatory Confusion

Only 0.01% Of Apps Will Be A Financial Success By 2018. [Report]

Facebook Launches Indian Political Interest Lists Ahead of Assembly Elections

2 Must Have Weapons For A Web Design Ninja [Tools]

Kejriwal Government in Delhi for Free Software; Meets Richard Stallman

Government of India Has Issued 56 Crore Aadhaar Numbers So Far

WeChat Launches In-App Games & Classified Service. Now Search For Your Local Restaurants While Messaging.

—–––– Channel: Indian Startup Funding

BankBazaar Raises $13 mn funding from Sequoia Capital & Walden

TV Ad Platform SureWaves Raises Rs 35 cr Funding from Canaan Partners & Others

Accomodation Listing Service Grabhouse Raises Seed Investment From India Quotient

Cloud Telephony Startup Knowlarity Acquires Unicom Techlabs; Lays Out Inorganic Growth Plan

Update: ChargeBee Raises $800k Funding (Round Was Closed in Oct 2013), Is Processing $1.6mn Worth Transactions Every Month

Localisation Platform Linguanext Raises Series A Funding from Helion

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News Roundup: Change of Guard for Flipkart’s Mekin Maheshwari ; Rel Comm Names Bill Barney as Rel Globalcom CEO

Change of Guard for Flipkart’s Digital Media Head

Flipkart’s HR department has a new chief. The head of digital media and payments, Mekin Maheshwari, has now been appointed the head of HR at the company according to a report.


Mekin who used to head Flipkart’s payment gateway service PayZippy and eBooks took over as Chief People Officer (CPO) in December says the report in the Economic Times.

According to the report Mekin feels that managing people will be crucial for the company to meet the sales target of Rs 6,200 crore by 2015.

This is definitely an interesting development at Flipkart that had coincidentally also hired about 118 graduates from IITs last month.

Bill Barney Named CEO of Rel Globalcom

Reliance Globalcom, a division of Reliance Communications has appointed William Barney as CEO of its offshore businesses – FLAG, Yipes and Vanco.

According to the company, the former CEO of telecommunication provider Pacnet is said to take charge of office immediately. He is set to operate out of Hong Kong and Mumbai.

Barney is a telecom industry veteran with  nearly ten years of experience serving as CEO of Pacnet and also the Asia Pacific President and CEO of MCI Worldcom that is currently a subsidiary of Verizon Communications.

Weekly Summary: E-commerce Going Offline In India; Aam Aadmi Party’s Online Crowdfunding Success & More

The new year is off to a kick ass beginning with a few startups announcing their fundraise and Bangalore based Little Eye Labs’ getting acquired by social networking giant Facebook. The acquisition could be one of the many to come this year.

This week, we also covered some important trends in the e-commerce space. Some of the interesting articles include a look at the upcoming hybrid retail model in the country, the rise of Facebook Groups as an alternative to classifieds and a quick one on Aam Aadmi Party’s phenomenal online crowdfunding campaign. We also covered the mobile app ecosystem in detail.

In the second episode of our Growth Hacking series, we talked about how Guest Posts can be a way of growing your startup. Of course we broke some news like the coming of Asia’s first Shoppable hangouts to India.

For all the action you missed out on NEXTBIGWHAT last week, check out our weekly recap below.

Weekly Summary
Weekly Summary (image credit: shutterstock)

Ecommerce Going Offline in India : A Fad Or Market Reality?

What Changes After Facebook’s $11mn Acquisition of LittleEyeLabs

The Indian Mobile App Race: The Race Mobile Messengers Are Winning.

Of Bangalore Auto Strike and Why Chance pe Dance Phenomena is Underrated

Personal Technology Trends in India: The Great Migration Has Begun [Rewind 2013]

Bottoms Up: With New Campus Recruiters, Backbenchers Stand a Better Chance

ISRO Scientists Share Candid Thoughts on an Unofficial Reddit AMA; Including “Kitna Deti Hai”

Are Facebook Groups A Threat to Online Classifieds?

How Tint Crossed $1 Million In Revenues 11 Months After Launch [UnPluggd]

Of Guest Posts And The Art of Growth Hacking

——— Channel : Indian Startups / Resources

Indian Startups, Are Convertible Debts for You?

With Personalisation Suite, Targeting Mantra Ups Conversion Rates for Ecommerce Stores

With Their DIY Kits, CoolJunk Wants To Help You Learn Electronics

JunoTele Makes Real Time Carrier Billing Possible for On Demand Services

Edu Startup Vedantu Helps Teachers Launch Their Own Apps

To Patent Or Not To Patent!

With Interactive Sessions, Edureka Wants to Break the Monotony of Online Classes

The Online-Offline Convergence : Touch Screen Meets Digital Catalogues at Shopsense

——— Channel : India Online

India to Launch Internet Monitoring Tool Netra

Paytm Joins The E-wallet Bandwagon With Paytm Cash Wallet

Online Shopping Search Trends of 2013: Mobile, Apparel Most Searched Categories

Google Brings Asia’s First Shoppable Hangout to India With Myntra & Hrithik Roshan

A Look at India’s Social Media Landscape

AAP Online Donation takes off in a big way; Raises Rs 5 cr in Under A Month

Goibibo launches goCash; An E-wallet

Reliance Jio 4G Plans: Android Set Top Box; Jio Drive; Mi-Fi & More

Updated: E-commerce Firm Allschoolstuff To Scale Down Consumer Facing Business; Not Shutting Says CEO

Government’s e-Transactions Multiply 100X, Crosses 2 Bn in 2013

BJP Supporters Protest Twitter India News Head Raheel Khursheed’s Appointment; Says He is Anti Hindu

Web18 to shutdown and Other Properties? [Updated]

State Bank of India Launches Online Marketplace for Its Card Holders, Powered by Martjack

Election Commission Severs Partnership With Google on Security Concerns

——— Channel : APPS/ Stuff

Nokia Launches Lumia 525 and 1320 in India. Gets Pricing Right.

Vodafone India Opens Up App Developer Platform With API Access

Not Able To Find The Right Typeset For Your Website? Try These 2 Tools

Startup mYwindow Pivots; Launches App That Makes Selling Digital Goods Easy

—–––– Channel: Indian Startup Funding

Exclusive: TrueCaller Secures Funding from Sequoia Capital India

It’s Official, Bangalore Based Little Eye Labs Acquired by Facebook

Online Grocery Retailer EkStop Shop Raises Funding From Ronnie Screwvala’s Unilazer Ventures

Low Cost Ophthalmology Devices Company Forus Raises $8 mn from Asian Healthcare Fund & Others

Mobile Publishing Platform MobStac Raises Series B Funding from Accel Partners & Cisco

Mobile Payment Startup, Mswipe Raises Series B Funding

Power Management Startup xSi Semiconductors Raises Funding From IAN

Healthcare Services Marketplace MedyPal Raises Seed Funds From Unitus Seed Fund

Online Supermarket LocalBanya Raises Series A Funding

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Weekly Summary: The 2013 NextBigWhat List of 100+ Indian Startups; Bitcoin in India & More

Here’s wishing all our readers a Happy New Year! Last week, being the end of the year 2013, we covered some of the major trends of 2013. We published a 100+ list of most promising startups from the country.

We even saw some interesting and insightful posts on entrepreneurship and running startups by some of our guest authors.

For all those who missed out on our 2013 recaps and other coverage, here is a curated list of all the important import happenings from last week.

Weekly Summary
Weekly Summary (image credit: shutterstock)

Meet. India’s Most Promising Startups [The 2013 NextBigWhat List of 100+ Indian Startups]!

GovTech in India: A(A)Pain for Govt, Cyber Monitoring, Tech Buying & More [Rewind 2013]

What I Learned from 10 Months of Starting Up: Social Media Isn’t Great for User Acquisition

Startups : Would You Be This Transparent? [Open Salaries]

Why I Have Become Pessimistic About Indian IT

You’re On Top of Your Career Ladder, But Did You M.A.D?

Earning before learning – Did Indian IT Kill Innovation & Entrepreneurial Spirit?

Is Bitcoin Legal in India? The Glimmer of a Bright Light

10 Trends That Will Drive Email Marketing Strategy in 2014

Happy Birthday Apple…Well Technically!

Peace Auto: Giving the Auto Driver a Peaceful Makeover [DOER]

–––––– Channel : Indian Startups / Resources

Indian Startup Trends of 2013 : AcqHires, Startup Exits, Hardware Startups, B2B and more

The High-Flying Indian Startups: NextBigWhat of 2014

InterviewStreet Rebrands to HackerRankX, Integrates Hiring and Coding Platform

Kicksend Launches in India; Now Print Photos from Mobile

2013 in Books: Something For Everyone

–––––– Channel : India Online

Vodafone India Launches Streaming Service Vodafone Music

Facebook in Regional Languages Free for Airtel Users

SMS Is Now Recognized As An Official Document : Government

Election Commission Partners with Google to Help Voter Registration & Facilitation

Aircel to Start 4G Deployment in Chennai; Picks ZTE Releases Gaana 3.0 App

–––––– Channel : APPS/ Stuff

The Mobile Industry in 2013 – A Timeline

BlackBerry Launches Enterprise Solutions Centers in India; Losses Mount

India launches National Mobile Governance Initiative Mobile Seva

Post RBI Warning, Bitcoin Ops in India Shut, ED Conducts Raids

India’s Central Bank Cautions Users Against Bitcoin & Virtual Currency

What’s on the Tech Radar in 2014? Multi-vendor Clouds, Context Aware Computing

Mobile Advertising Trends 2014: Native Advertising; Wearable Tech & More

Data: 3G Started Picking up Mid 2013; Delhi Tops Online Mobile Recharge

Free Google Chromebook in Indian Schools

National Vehicle Security and Tracking System to Install Security Cameras, Panic Button & GPS in Public Vehicles

–––––– Channel: Indian Startup Funding

Tech IPOs in India 2013: There’s no List

V Balakrishnan To Join Exfinity Fund; Will Back Over 15 Tech Startups

Hyderabad Based Incubator & Seed Fund, BitChemy Ventures invests $6M in 3 startups

IvyCap Ventures Receives Rs 180 cr Commitment; Targets Closing in 2014

India Likely to Clear FDI In Ecommerce by End of Financial Year: Report

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Weekly Summary: Dhingana shutdown(?), GOSF Marketing; UnPluggd Product Demos

This week saw us cover some interesting startups, starting with CyclerCity, India’s first bike messenger launched in Bangalore, MagnetWorks, DigiCollect-GIS along with the other startups that demoed their products at UnPluggd. The funding space too saw a lot of interesting activity from Unitus Seed Fund taking part in 3 deals this week. Online real estate portal Indiaproperty also raised $12 Million in Series B funding led by Bertelsman.

Here is a curated list of all the important import happenings from last week. Visit the list below to check out on all the action you missed out on.

Weekly Summary
Weekly Summary (image credit: shutterstock)

Startups, Fire the Middleman When They Can’t Lead

How Some Brands Cut Through The Noise During GOSF 2013

Cyclercity Introduces Bike Messengers To Bangalore; Aims for Scale & Accuracy of the Dabbawala

Why Deck Raised $600k; Here’s the Plan

DigiCollect-GIS Wants To Simplify Geographical Data Collection & Visualisation

Impact of Gmail’s Latest Image Loading Change on E-mail Marketing [Demystified]

MagnetWorks Wants To Make Industrial Automation Affordable

How Startups Can Do Business With Big Companies: Sanjay Swamy of AngelPrime

–––––– Channel : Indian Startups / Resources

Open Source CloudEngine Wants to Be the LAMP for Mobile Developers

Senseforth Helps You Make Informed Decisions With Its NLP Based Platform

Turn Celebrities into Native Ad Units For Your E-commerce Store with Hoverr Helps You Organize Multiple Cloud Services With Ease

Meet 20 Year Old Pulkit, A College Dropout Who Wants to Build the AWS for Drones

Integrate Data Between SaaS Apps Using Zapstitch

Explara Launches Event Marketplace Solutions & APIs For Event Management Services

Now Search for PGs on Housing

allMemoirs Creates A Personalised Shopping Portal Just For You

Now Create Custom Lists for Occasions on Wishberg

–––––– Channel : India Online

Flipkart Revenue 2013: Grows 5x as Loss Doubles

Music Streaming Service Dhingana Shutting Down?

Flipkart’s PayZippy Launches Store Card Feature For Faster Checkouts; Expects 1 mn Signups by June

Sunny Leone is the Most Downloaded Actor on Airtel Mobile Network

Google Zeitgeist 2013: Its Sunny Leone Again! Sachin, NaMo & Chennai Express Most Searched

Top Trends In 2013 On Twitter For India: Sachin, KJo & IPL Create Buzz

Cleartrip Launches Pay@Hotel: Book Online, Pay Offline

Reduce Data Launches Real-Time Bidding Based White Label Media Platform

–––––– Channel : APPS/ Stuff

What’s Good to Eat here? Where’s The Best Biryani in Town? Ask DishoomIt

Bangalore Police To Launch Android App To Crowdsource Auto Rickshaw Reviews

Kerala Government To Distribute 10,000 Raspberry Pi In Schools

Now Datawind Enters Smartphone Market with PocketSurfer5; Will You Buy?

Tablet Sales in India Grows Modestly; Samsung Has Most Marketshare

Truecaller’s Scorching User Growth in India: 22 Mn & Counting!

Nokia Lumia 1520 Launched: Price in India is Rs 46,999

Viber Windows 8 App Launched

–––––– Channel: Indian Startup Funding

Indiaproperty Secures $12 Million Series B Funding Led by Bertelsman

ATM Management Co Electronics Payment & Services Raises Rs 33 cr from Netherlands Based Fund

Unitus Seed Fund to Invest in 30 BoP Startups; Receives Sebi Approval

Low Cost Eye Screening Startup Welcare Health Systems Raises Funding from Unitus Seed Fund

Marketplace for Co-Operatives GoCoop Raises Funding from IAN & Unitus Seed Fund

Fashion & Gift Recommendation Startup Giveter Raises Funding from Flipkart Co-Founder Binny Bansal, Startup Superfuel & India Quotient

Gaurav Burman of Dabur International Buys into itBit, A Bitcoin Exchange

Massive Government Aided India Inclusive Innovation Fund Receives Cabinet Approval

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Flipkart’s PayZippy Launches Store Card Feature For Faster Checkouts; Expects 1 mn Signups by June

payzippy-logoOnline retailer ‘s payment solution * has launched a new feature where customers can now store their card information so that you don’t have to key it in every time you want to make a payment on a merchant site.

Flipkart had earlier received PCI DSS certification, to be able to store card information and the service was active on its own website. But now, the store card feature will be available for merchants who use PayZippy as their payment gateway.

PayZippy tied up with merchants for launch offers for their initial customers, the company said. Merchants are offering cash backs, discounts on transactions and gift vouchers to people who use the service.

Mekin Maheswari, Head, Payments and Digital Media, said,

With PayZippy we have actually reduced the time taken for making online payments by 50%. We are expecting at least 150,000 customers to sign up for this service within the first month and our target is to get 1 million customers by next June.

PayZippy can also be used on other merchant sites like MakeMyTrip, BlueStone and LensKart and Travelyaari.

The service will soon scale up and be available across most large online merchants in India, the company said.

PayZippy for merchants, launched earlier this year, powers card payments for domestic merchant websites and mobile sites.

Disclosure: PayZippy is an advertiser on NextBigWhat.

Amod Malviya: Engineering the Flipkart Story [NextBigWhat Profile]

A conference room at Flipkart
A conference room at . Image: @amodm

The second floor of Flipkart’s office in Koramangala is cramped with red eyed engineers- mostly in their mid twenties. They’ve been hacking through the night. Amod Malviya, the man who heads engineering at Flipkart, emerged from one of the glass enclosed meeting rooms and took me to another similar looking room where he explained what he’s been doing for the last few hours.

Between meetings he’d been tinkering with a hack of his own with a colleague. It’s a hardware contraption, cobbled up from a broken cell phone and a motion sensor. Malviya was pressed for time, so he quickly talked about the hack and left before I could move on to bigger questions.

It was mid September. Flipkart had just finished raising $200 mn from investors and was preparing to raise another $160 mn to fight what is likely to be a long winding battle with Amazon, world’s largest online retailer which entered the Indian market a few months ago.

Much of Flipkart’s success has been attributed to the strong technology it has built over the years. It is now up to Malviya and his army of engineers to keep the company ahead of the technology curve, even as Amazon brings world class tech to tap India’s growing e-commerce market.

The next time we met, at the ground floor of the same office in a similar glass enclosure, Malviya was prepared for a long chat. Dressed in formals, he was carrying a new iPhone and was in the mood for conversation. Outside, you could see Sachin Bansal, the co-founder of Flipkart pacing up and down, engrossed in what appeared to be a serious discussion.

Bansal, an engineer himself, founded the company in 2007 with Binny Bansal, his colleague at Amazon, which is now a competitor to Flipkart in the Indian market. Flipkart is often mistaken by the geeks for a technology company more than a retailing company.

Between keen founders who are engineers themselves and a company which is rapidly growing, Malviya has his work cut out. He envisions Flipkart as a company which is using technology to create a presence in the retail space.

Flipkart Hackday
Amod Malvyia (L). Hackday @ Flipkart (Image: Flipkart Tech Blog)

“Did you actually go around the floor and see all the hacks?,” Malviya, is curious to know. Hackday is one of those days he gets to do what he loves most. “It’s almost like a stress buster for me every time I’m able to take time out and build something,” he said.

“The technology mindset runs deep into Flipkart. It runs in every function including our customer support,” he said. Recently, the engineering team at Flipkart built a product which plugs into the proprietary customer support tool to improve customer experience as days go by. The idea is to get closer to sensing a customer, “like when you go to a Kirana shop.”

Such personalization and contextualisation, helps e-commerce companies improve sales by a great deal. In fact, much of Amazon’s success is attributed to the fact that it has cracked personalization to a great extent.

“We end up investing a lot into such aspects of technology,” he said. When Flipkart announced its big funding round in July, Sachin Bansal outlined a plan to invest in developing a better supply chain and talent pool.


While the company has been largely successful in meeting customer expectations, Amazon’s entry into the Indian retail market is now putting pressure on Flipkart to deliver better service and cheaper goods. The American multinational retailer, is expected to bring processes and technology that powered it to become a retailing powerhouse, to India.

“It’s super exciting,” is what Malviya is ready say. Not much to go by, but I wasn’t ready to give up as yet. Though he admires Amazon’s technology he’s fairly optimistic that his team of engineers are doing things that will keep Flipkart ahead of the game. To be sure, some of them have also worked at Amazon before.

“We just like to work and have a run with what we believe is relevant to us,” he said. The company wants to solve technology problems that are applicable not just to India but also across the world. Much of Flipkart’s engineering team is now working on making the “Flipkart experience” better on mobile. Flipkart recently launched mobile applications for Android, iOS and other mobile operating systems. Saran Chatterjee, a former product guy at Yahoo! heads the company’s mobile initiative.  (Read Interview)

“There could be a team focused on security, experience, and many more specialist groups,” said Malviya, who along with Mekin Maheshwari oversees around 90 small engineering teams in the company. Although his feet are firmly grounded on realities of a fast growing company, Malviya has his eyes set on the horizon. Technologies like 3D printing and crypto currencies like Bitcoins could completely change the e-commerce business, he feels.

“What if you could have 3D printers in some logistics hubs and print a few things out,” he wondered.

In 5-10 years, the technology will play a very important role manufacturing and distribution of goods, he said.

Malviya has also been keeping a close tab on Bitcoins. His interest in Bitcoins, the crypto currency making waves across the world, comes from the geek in him. “It has a strong technology base to it. Governments find it very difficult to regulate the currency and it would be interesting to see what happens,” he said. Bitcoins are already accepted by many e-commerce websites across the world, although not always for legal purchases.

 Sometime ago the company had bought a couple of mysterious sounding domain names Paykrypt and Paycrypt. We wondered if this was a precursor to some sort of a crypto currency integration. “We keep buying a lot of domains. I don’t even know how many. That’s just a way of hedging against the future,” he said.

Micropayments is another area he is keen on. In the last month or so, many of his friends have been starting companies dealing with micropayments, a tough problem to solve in India. Flyte, the company’s now defunct music service, used to accept micropayments. But it didn’t fly. Users didn’t always want to whip out their credit cards to pay small amounts of money online.

In its early days, Flipkart often faced problems with payment gateways, which allowed users to pay online for goods bought on the site. To fix the problem, the company built its own payment gateway from scratch. Soon,  Flipkart  launched , a payment gateway service which other e-commerce companies could also use. Maheshwari looks after PayZippy.


Amod & Colleague setting up one of Flipkart's first Data Center Machines. (Image: @amodm)
Amod & Colleague setting up one of Flipkart’s first Data Center Machines. (Image: @amodm)

Malviya, 32, grew up in Shaktinagar, a small town in Uttar Pradesh now known as the power capital of India. His father Vijai Kumar Malviya, an official at the National Thermal Power Corporation, sent him to a nearby school and hoped that he would make a career bureaucrat some day.

“My dad would often encourage me to study for IAS. Didn’t get through..It was a disaster. I realized that if there is one thing that excites me it is computers,” he said.

“Schooling was a roller coaster ride. I would be in the top 10 mostly. I wasn’t really bothered about that but my family was,” he said. Like many others in his class, he grew up dreaming of going to the prestigious Indian Institute of Technology. “IIT is a dream that a lot of us actually had but very few made it. I qualified immediately after class,” he said.  In a class of 40, he usually ranked somewhere in the middle. “I was that bad in studies,” he jokes. Less than 2% of students who appear for the entrance examination to an IIT make it.

In college, Malviya started spending a lot of time in the computer lab. He became the system administrator of the computer lab in his second year. “It was so awesome. It felt like my life’s biggest achievement,” he recalled. At the end of college in 2002, he graduated with a CGPA score of 7.54, just enough to get him through to his first job. He worked at i2 Technologies in Bangalore for two years.

Kharagpur, where he went to college was also a remote village. He recalls his first visit to Bangalore as being intimidating. Malviya was one of the thousands of engineers who moved to Bangalore for work in those days. As the capital of Karnataka, and the epicenter of India’s IT revolution (the flat world, as Tom Friedman described it), Bangalore already had its malls and multiplexes.

His first job offered great things and had its pitfalls. “I decided that if I had to move on, I better move out,” he recalled. Since then, he has worked at startups. “I’ve never been part of the founding team but I’ve always had stake in the company,” he said.

Flipkart is the largest startup he’s been to. Malviya, who joined the e-commerce firm in 2010 and Mekin, who’d joined a year ago, built much of Flipkart’s software backbone with their engineers. This was around the time when venture capitalists were very keen on investing in Indian e-commerce companies. In three years between 2009- 2012, venture capitalists invested more than $700 mn in 52 e-commerce companies. Some of them, including Flipkart, went on to raise very large follow on rounds.

Although Flipkart is no longer a startup, there are traits that come from its startup days that he loves. Like in most startups, there have been intense debates in the company. “But that never got to a point where we would quit,” he said. “We’ve had legendary fights’ but we’ve always managed to find out what’s the right approach. That’s because fundamentally we are on the same plane,” said Malviya.

“If he signs on, he signs on. He is one of those rare bright engineers who take the project to completion and do not leave it at 80% marker,” Azhar Khan, the founder & CEO of Agnitus and a former colleague wrote on Malviya’s Linkedin profile.


Every day, Malviya  drives to work from a gated community, some 10 kilometers away. Though a Linux guy, he likes Apple products that are much more refined. At the same time, he dislikes them for their closed (non-hackable) nature. “Hackable gadgets is where my heart truly lies, e.g. Raspberry Pi (still to get one) – immensely hackable, fantastic product that could be just about anything that you want it to be.”

Malviya who worked his way up in the company, spends nearly an hour daily on hiring new people. Unlike larger corporations, where the pedigree of a candidate is clearly given weightage, Flipkart is open to hiring great hackers, with or without a great pedigree. He feels that it isn’t fair to discriminate based on the name of the college. There are people who are doing interesting stuff in other places.

Even though he holds the IIT brand close to his heart, there is a lot of talent outside of IITs, he feels. If you exhibit great programming skills, the CGPA scores matter very little to him.

“If you’you’ve never written code that is publicly visible, I’ll probably look at your marks,” he said. “It’s bit personal for me and its not the best judge of a person,” he said.

**Amod Twitter Delivery

Technology problems at Flipkart are getting tougher by the day. “Some of our peak numbers can really throw you,” says Malviya. On a day in June, Flipkart made a record 1.3 lakh shipments. Every day, more than a Terabyte of data is generated by Flipkart customers. These are nuggets of information that are of great value to the company.

“It (data) typically doesn’t grow linearly. Which means with every month we were creating more data per visitor,” says Malviya who is keen to point out that the company is “maniacal” about data security.

The company has nearly 10 million registered users and a million unique visitors every day. It has now entered newer categories such as apparel, footwear, toys, accessories and eBooks with a target of hitting $1 billion in gross merchandise sales by 2015.

If the requirements never change, we can have a perfect system. But if it keeps changing, you have to continuously experiment. The systems being built at Flipkart have to be both scalable and flexible. Engineers use a method called continuous platformization. “It’s not really an English word. It means we have to abstract things out and allow flexibility underneath it.”

Flipkart Adds $160 mn To Latest Round of Funding

flipkartE-commerce company has raised another $160 million to add to its previous round of funding. The company had raised $200 mn in July.

The Dragoneer Investment Group, Morgan Stanley Investment Management, Sofina and Vulcan Capital and Tiger Global have participated in the round.

The homegrown e-commerce company had raised $200 mn from existing investors including Tiger Global, Naspers, Accel Partners and ICONIQ Capital in July.

The funds will be used to build Flipkart’s technology and supply chain capabilities, develop the talent pool and further enhance the end-user experience, the company said.

Earlier, Flipkart had raised $150 mn from Accel Partners and Tiger Global.  Rival e-commerce firm Snapdeal raised $50 mn from e-bay in March.

The Indian e-commerce industry is expected to grow to $76 bn by 2021, according to a Technopak report. The business is now largely dominated by the big players. Series A investments in Indian e-commerce has almost dried up and many smaller e-commerce companies have shut down.

Flipkart Facts: 2013

Registered users – 1 crore
More than 10 lakh unique visitors every day
Peak items shipped in a day – 1.3 lakhs (June 2013)
Launched , an online payments solution
New categories that Flipkart have entered (June 2012 – October 2013): Apparel, Footwear, Toys, Sun glasses , Home furnishings, Accessories, Sports and fitness, and eBooks

Flipkart CEO Sachin Bansal at UnPluggd

Are Indian Payment Gateways Secure Enough?

[Editorial Notes: Indian payment gateways need to step up the game. Read this summarized version of the original article  that guest author, Gaganpreet wrote a few days ago].

India has only a few payment gateways, and they are all complicated to use, partly due to government policies on accepting payments. They require a long list of documents, have different plans based on the merchant’s initial spending budget, charge a yearly/monthly maintenance fee and, in general, have difficult to integrate APIs.

What makes a gateway secure? I thought it best to pick some of the standard industry practices and check if the gateways are following them. The ones I chose were:

  1. Secure login page for merchant – A login page transmitted in plain text over HTTP is vulnerable to being tampered with in transit.

  2. HTTP Strict Transport Security (HSTS) – HSTS is a server header which tells the browser to permanently contact the site over a secure channel only. This is transparent to the user and even if he/she bookmarks an HTTP link, it’ll automatically be converted to the HTTPS link while opening. On the other hand, browser redirects are limited to a single link only and are stored in a browser’s cache.

  3. Secure cookies – Cookies should be marked with the secure tag so they are transmitted only to the HTTPS site.

  4. Non tamperable signature – While processing a transaction, the merchant redirects the user to the gateway, which then redirects to the bank. During these redirects, transaction data — such as transaction amount and status — is also transmitted. These redirects need to be made non-tamperable by creating a digital signature of the data, called the message authentication code (MAC).

  5. Openly published security standards – The gateway’s security standards should be openly published for public scrutiny. Many gateways, for example, don’t publish the MAC algorithm they use and have been using a very weak algorithm for ensuring data integrity.

Here’s a matrix of my observations based on the above mentioned best practices:

Payment Gateway

I contacted the gateways to report my observations and asked about their plans for improvement, which are reflected in the “gateway response” row.

Some of the gateways are using very insecure MAC algorithms, with MD5 being the most popular for some reason. It’s hard to believe that gateways are still using it since it has been proven to be cryptographically broken for years now. Additionally, every gateway, except Zaakpay, have kept their MAC implementation secret. It took me a while to find which algorithm was being used by everyone. But existing and past merchants already have access to this knowledge, and by keeping their security practices secret they have escaped the public attention which could have brought these issues to light long ago.

Merchants’ account access is not properly secured either. Login pages available over HTTP, not using proper redirects, allowing cookies to be sent over clear text point to the one underlying problem common to many gateways — bad design decisions.

About the Author: Gaganpreet is a freelance software developer based in Bangalore.

If you have strong views on Indian payment gateways, take our Indian payment gateway survey.

Recommended Read

What has not changed with India’s Payment gateway providers

Compared: Payment Gateways in India [PayZippy Vs PayU Vs CCAvenue & Others]

The Indian Payment Gateway Survey : Calling Ecommerce Companies

The Indian Ecommerce market has grown well over the last few years, but the underlying infrastructure, i.e. the payment gateways haven’t scaled to match the growth.

Maybe they have. Maybe they haven’t (read : What has not changed with India’s Payment gateway providers).

So here it is : Calling Ecommerce Companies/Entrepreneurs/Founders and Support teams to take this survey and share your feedback on the payment gateways you have used.
This is a comprehensive survey to understand the performance of payment gateways in India.

Recommended Read : Comparison of Indian Payment Gateways

What has not changed with India’s Payment gateway providers

[Editorial notes : This is a guest post written by Santosh Panda, Founder of Explara. His sentiment pretty much resonates with every other Indian entrepreneur in online space]

These are personal views written on personal blog. My product uses various gateways and this post is based on ‘practical’ issues written in the spirit of making things better. If you feel misquoted, you can reach me.

We use services of so called leading payment gateway providers, even the new ones.

Rate of Failures

They compete on who can offer 0% gateway fee rather than 0% failures. Hello Gateways!, your merchants needs food not air i.e. they need 99% successful transaction not 0% processing fee. The rate of failure is an assumed phenomenon in India and they assume they will continue to mint money on failed assumptions.

Bad Customer Service

We ‘make’ them crores of transaction, I mean crores and you know what they do to us ? They don’t pick our phone calls even during office hours or don’t follow up on support requests. Can somebody tell them to use FreshDeskSupportBeeExotelWebEngage or similar services?

Activation Deaths

Even today in the fast forward Startup world, activation is one factor that can ruin you! Try getting a service activated and you will know!

Lack of forward thinking

Payment gateway operators think Social media is some sort of an alien phenomnon. We hear comments like ‘your website footer has links to Twitter, can you remove that please before we can approve a service’. OMG, what on earth you are talking about?

Red tape

Somehow they will try to make you wait and go from post to pillar as they know that their good and bad payment gateway competitors do same. Wow, what kind of a world are they building.

International cards

Payment gateways are so secretive about why they don’t offer international card processing, you’d feel like somebody has cursed you to not think ‘international’.  “Anyway, we are big coolies of the world, so how can we build amazing products that an international audience will like to take service from,” they seems to think.

Unwanted Data

Why do they need shipping address shown to user when user is buying an electronic good? Even if they need the same for physical goods, can they not provide an option, so we could switch off? OMG, this is technology when they make Rs 300 crore gross in a year!!

Partial Data capture

They clear a transaction even when the name was not captured. Our merchants blame us and think we are the culprits.

Poor UX

Lets just stop here. Shall we. What is UX?

What are your thoughts?

Recommended Read : Indian Payment Gateway Compared

[This edited article has been reproduced from Santosh’s blog]

Checklist For An eCommerce Startup [WHITEBOARD FRIDAY]

eCommerce has been growing aggressively in India and, looks like, is here to stay. More and more money is being pumped in making this the future of retail. There are multiple aspects that needs to be analysed properly before you can think of an eCommerce venture. The taxations and legal requirements are fairly complex especially because you deal with customers across India and is bound to follow various laws & taxes related to different states.

Having worked with some very good names in this space, the eLagaan team takes a look at how to structure your eCommerce business, what are the various laws and taxes you should be aware of, the delivery & payments logistics, the complexities in accounting, compliances & management processes, way for structuring FDI investments etc.

Recommended Read

Costs of Setting up an E-Commerce Business in India [Analysis]

Compared: Shopify Vs Zepo Vs BuildaBazaar [Set up Your E-commerce Store]

Compared: Payment Gateways in India [PayZippy Vs PayU Vs CCAvenue & Others]

We are half way there ($1Bn GMV Goal): Sachin Bansal, CEO, Flipkart

Sachin Bansal, Co-Founder & CEO, Flilpkart at UnPluggd. Pic: Abhinav Munshi
Sachin Bansal, Co-Founder & CEO, at UnPluggd. (Photo: Abhinav Munshi)

Flipkart raised $200 mn from investors and announced it yesterday. The company is likely to clock $500 mn in gross merchandise value this year and is targeting $1 bn in 2015. It shipped 1.5 lakh orders on a single day last year. That’s over 1.7 orders a second. At the heels of Amazon’s launch in India, Flipkart pared excesses and upped its product focus. The company doubled down on its fashion business, shut its music business Flyte and launched a payment gateway . On a conference call on Wednesday, Sachin Bansal, the Co-Founder & CEO of Flipkart talked about the company’s future plans, the growth of e-commerce market and government regulations. Edited Excerpts:

How is Flipkart growing?

We have almost reached one crore users (10 mn) on Flipkart. We are still on target to achieve $ 1bn Gross Merchandise Value (GMV) by 2015. I’m happy to announce that we are more than half way there towards that goal on a run rate basis. We get more than 10 lakh or a million unique users a day. From a shipment velocity point of view, we want to scale up 3-4x our current velocity in 2 years. Marketplace was an experiment that’s taken off better than what we expected. We have more than 500 sellers and some of them are even facing supply chain issues now. Some of them are getting to 1000s of shipments a day at peak. We are working with them to solve that. We are at an early stage.

State of the e-commerce market?

E-commerce was about  $1 bn in gross merchandise value in 2012. That, according to Technopak is set to become $76 bn by 2021. We believe that is going to happen. The reason is that 30-40% of India will be online with mostly 3G users.

Mobile will most likely be a superset of PC users at the time.

As the size of retail becomes bigger and e-commerce becomes better with the ecosystem around e-commerce (packaging, logistics, payments), we believe that $76 bn is possible.

What’s the total investment you have raised so far from venture capitalists ($380mn?)?

We have not talked about that so far. Total investment size is something that doesn’t matter. What’s important is that we have been able to raise funds at a strategic point in our business. Our fund raising has been growing as we have been growing. The reason is that we are seeing bigger and bigger opportunities. In 2007, we had no idea where this could be. In 2011, we said billion dollar possibility by 2015. Today we see bigger opportunities and we need investment to go there.

What is the valuation at which you have raised the funds?

Again, like I said: I think we are at billion dollar overall market size last year. valuations don’t matter at this point. Binny and I are thinking long term and our investors are thinking very very long term. They are very patient.

What regulatory issues do you face?

Suddenly, it has become a big sector. Government had not thought about it. There was not much clarity on the policy side. THat includes FDI, Tax regulations and other things that affect us. The good part about this is that the regulatory bodies and policy makers are very interested in knowing more about the sector. We are working with trade bodies and government to make them understand our needs, what we can become and there is a long way to go. WE are confident.

Where are we between the Government and Flipkart?

We are a large operations. Government bodies have questions from time to time. We are committed to answering them and being compliant. When the laws are not favorable, we will work with the Government.

Lots of questions around Flipkart & Growth of Indian E-commerce Market..

There have been a lot of questions being asked of e-commerce in India. Like for instance, are the Indian companies building e-commerce the right way, is it the right strategy, is the sector viable? There are a lot of regulatory issues and other kinds of pressure. There has been a lot of skepticism around the space and Flipkart.

This is a validation for India’s growth story that new sectors can come up in India.

Its a validation to the e-commerce industry itself. That it has potential and is healthy. Its a validation of our thoughts and our ways.

Why does Flipkart enter late into categories?

We believe that its not late. We have to balance our supply chain and the demand. So far we have had the right timing. Whether it has been electronics, books or fashion.

Watch Sachin Bansal’s UnPluggd conversation