SIDBI VC invests in cash management startup RCI.
The venture capital unit of Small Industries Development Bank of India has invested an undisclosed amount in RCI Cash Management Services, a three-year-old startup that plans to use the fund to expand its services to banks and ATM service providers.
RCI, which currently provides cash replenishment services covering about 5,000 ATMs, is aiming to expand it to 45,000 ATMs in the next few years.
The startup is fully owned by the founders, Sudip Kumar and Pawan Gupta, and some of their family members.
SIDBI VC has made the investment through convertible instruments and the exact stake it would get in the startup will be decided only after a year or two, people close to the matter said.
With a cash-to-GDP ratio of about 12, India is still a cash-driven economy, industry trackers said. “Also, the growth of ecommerce’s cash-on-delivery option is driving the cash replenishment business for companies like RCI Cash Management Services,” said Meenal Dutia, vice president of investment banking at Intellecap. The firm advised RCI in the deal.
One of the founders, Kumar, quit his job at Tata Communications Banking InfraSolutions (now Tata Communications Payment Solutions) in November 2012 to start RCI. Kumar and Gupta, who had founded logistics firm RCI Logistics, came together to start RCI Cash Management.
Website : www.rcicashmanagement.com