Digital payments giant Paytm has acquired New-Delhi based Cube26, a tech startup backed by Tiger Global and Flipkart with $7.7 Mn Seed funding in 2015.
Post acquisition, the Cube26 team will join the digital payments major and work towards adding more social engagement features to Paytm’s products and services.
This acquisition will help the company by leveraging the work that Cube26 has done in this area.
“We are focused on building a more immersive and feature-rich mobile experience for our large active user-base,” said Madhur Deora, the chief financial officer at Paytm.
Founded by Saurav Kumar and Abhilekh Kumar Agarwal, Cube26 was formerly known as PredictGaze, and it started operations in 2012 in California.
Saurav Kumar, CEO & Co-Founder, Cube26 said, “Our team has been building technology products that are used by millions of users. I believe our diversified experience in creating smarter products across software and hardware segment will help add value to Paytm and to several of its products and services.”
Cube26 has customised Android OS and developed varied applications for OEMs to give them a competitive edge. They have build a platform between local service providers and smartphone users through their local app and game store to enable product led monetisation. It has previously developed the next generation of technology that allows devices to recognise users, interpret human gestures and understand their emotions.
At present, Cube26 was mainly working in the space of machine learning, enterprise software and others. With Paytm, Cube26 is expected to work to improve customer experience on Paytm and improve stickiness.
The development comes soon after Paytm announced rolling out the full-stack service under Paytm Inbox on its app. At present, the company claims to have more than 120 Mn monthly active users and expects strong growth after the addition of these new features.
Earlier in December 2017, Paytm also acquired Bengaluru-based O2O deals platforms Little and Gurugram-based Nearbuy, wherein it arranged a merger of the two startups and made a strategic investment in the resultant entity for a majority stake.
Prior to that, Paytm has acquired a majority stake in ticketing platform Insider.in and also invested in MobiQuest’s loyalty platform m’loyal. The acquisitions are in line with Paytm’s strategy of becoming more than a digital wallet and expanding the categories in which its digital payments services are being used.