India’s largest digital wallet company Paytm has acquired Delhi based mobile technology startup Cube26. The financial details of the acquisition have not been disclosed, triggering the speculation that this might be an acquihire.
Following the acquisition, Cube26’s entire team will merge with Paytm and work towards creating mobile engagement features for Paytm’s products and services. The digital wallet major said in a statement that they are fully committed in creating truly immersive mobile experience for users and this latest acquisition will help them in fulfilling this commitment.
Cube26 was incorporated in 2012 in California, back then the company was known as PredictGaze. It essentially makes customized Android OS and various monetized based applications for OEMs. The startup got major funding boost when Flipkart and Tiger Global together poured $7.7 Mn seed funding in 2015.
However, off late several reports suggested that the startup has been running in troubled waters. Last year in March, it was reported that the company is shutting down its IOT business due to lack of funds and increasing losses.
Meanwhile, this latest acquisition once again reflects Paytm’s highly aggressive acquisition strategy. Earlier this year, it acquired Chennai based online ticketing firm Insider.in with an aim to take on boomyshow.com. Last year, it also acquired Bengaluru-based O2O deals platforms Little and Gurugram headquartered Nearbuy.
The Alibaba backed startup has been on a roll to diversify its business as it searches for new opportunities. Apart from setting up Payment bank last year, it recently entered the wealth management business that will majorly focus on selling mutual funds. However, the company is probably more laser-focused on its e-commerce business, where stakes are comparatively high.
Paytm Mall – the e-commerce arm of Paytm – has already invested millions in ramping up its technology to take on Flipkart and Amazon. Following Snapdeal’s downfall last year, Paytm Mall is now the default third player in India’s e-commerce market.