Payments platform Dot has secured $7.8 million in a Series A funding round led by PayU Fintech Investments and Ruizheng Investments at a valuation of around $20 million.
InfoEdge Ventures and angel investors Kunal Bahl, Rohit Bansal, Amrish Rau, Vikrant Batra, Sachin Singhal, and Rekha Jain also participated in the round.
According to the RoC filings with the Ministry of Corporate Affairs, the Gurugram-based company has allotted 7025 Compulsorily Convertible Preference Shares (CCPS) and 30 equity shares at an issue price of Rs 76,366 to the investors amounting to a total $7.8 million.
The round was led by PayU Fintech Investments which has invested Rs 21.40 crore, followed by Ruihzerng Investments and InfoEdge Ventures who invested Rs 20.53 crore and Rs 10.41 crore respectively.
The company further allotted 94 shares to raise Rs 35.89 lakh each from Kunal Bahl and Rohit Bansal. Vikrant Batra, Sachin Singhal, Rekha Jain, Vaibhav Kakkar, and Saran Karda have collectively invested Rs 66.4 lakh in the Series A round.
These fresh funds would be utilized by the company for business expansion and have come after five months of advanced talks with the investors.
In September last year, Economic Times had reported that PayU and Fosun International are closing in on a $10 million equity financing round in Dot,
Floated by PayU’s co-founder Shailaz Nag along with Gyanesh Sharma, and Anurag Gupta back in May 2019, Dot provides digital transformation and commerce solutions to brick and mortar outlets, while providing extensive customer engagement offerings to these stores.
While the latest round has brought Shailaz Nag’s stake down from 56.1% to 30.8% in the company, PayU and Ruizheng Investments would be holding 15.38% and 14.75% stake respectively post this investment round.
Dot is Shailaz’s second stint as an entrepreneur after he quit PayU in July last year. He led the company as the co-founder and managing director for over eight years.
Jitendra Gupta, also a managing director at PayU and had served the company for around three years, resigned in July 2019 to launch his new venture ‘Jupiter’ in August last year.