MIRA INFORM REPORT

 

 

Report No. :

302630

Report Date :

13.01.2015

 

IDENTIFICATION DETAILS

 

Name :

VODAFONE M-PESA LIMITED

 

 

Registered Office :

Peninsula Corporate Park, G K Marg, Lower Parel, Mumbai – 400013, Maharashtra

 

 

Country :

India

 

 

Date of Incorporation :

13.09.2014

 

 

Com. Reg. No.:

11-258108

 

 

Capital Investment / Paid-up Capital :

Rs.500.000 Millions

 

 

CIN No.:

[Company Identification No.]

U67100MH2014PLC258108

 

 

TIN No.:

Not Available

 

 

IEC No.:

Not Available

 

 

TAN No.:

[Tax Deduction & Collection Account No.]

MUMV21656F

 

 

PAN No.:

[Permanent Account No.]

AAECV8934F

 

 

Legal Form :

A Closely Held Public Limited Liability Company

 

 

Line of Business :

Providing Mobile Money Transfer and Payment Services.

 

 

No. of Employees :

Information denied by management

 

 

RATING & COMMENTS

 

MIRA’s Rating :

NB

 

RATING

STATUS

PROPOSED CREDIT LINE

-

NB

                                       New Business

-

 

Status :

New Business

 

 

Payment Behaviour :

Unknown

 

 

Litigation :

Clear

 

 

Comments :

Subject is a new company incorporated by joint co-ordination of ICICI Bank and MCSL, a Vodafone Group Company in order to promote “M-Pesa” a mobile money transfer service for Vodafone subscribers. It is establishing its presence gradually.

 

The rating take into consideration, the service which leverages the combined strengths of Vodafone’s global expertise in the domain of mobile payments and significant distributor reach in India, plus the security of financial transactions provided by ICICI bank.

 

Trade relations are improving. Business is active. Payment terms are unknown.

 

In view of nacsency, albeit experienced promoters, the company can be considered for business dealings at usual trade terms and conditions. However, it is recommend to track further business developments.   

 

NOTES:

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

 

 

EXTERNAL AGENCY RATING

 

NOT AVAILABLE

 

RBI DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available RBI Defaulters’ list.

 

 

EPF (Employee Provident Fund) DEFAULTERS’ LIST STATUS

 

Subject’s name is not enlisted as a defaulter in the publicly available EPF (Employee Provident Fund) Defaulters’ list as of 31-03-2014.

 

 

INFORMATION DENIED

 

Management Non Co-Operative (Tel No.: 91-22-71715000)

 

 

LOCATIONS

 

Registered Office :

Peninsula Corporate Park, G K Marg, Lower Parel, Mumbai – 400013, Maharashtra, India

Tel. No.:

91-22-71715000

Fax No.:

91-22-24963645

E-Mail :

sudhakar.shetty@vodafone.com

Website :

https://www.mpesa.in

 

 

DIRECTORS

 

Name :

Mr. Vivek Mathur

Designation :

Director

Address :

Flat No. 202, Clayton Apartments, Sherly Rajan Road, Bandra, Mumbai - 400050, Maharashtra, India

Date of Appointment :

13.09.2014

DIN No.:

02673593

 

 

Name :

Mr. Sunil Sood

Designation :

Director

Address :

Flat No. 2401/2402 Petit Towers, August Kranti Marg, Kemps Corner, Mumbai - 400036, Maharashtra, India

Date of Appointment :

13.09.2014

DIN No.:

03132202

 

 

Name :

Mr. Suresh Kumar Sethi

Designation :

Director

Address :

C-901, Lodha Bellissimo,Apollo Mills Compound, N. M. Joshi Marg, Mahalaxmi, Mumbai - 400011, Maharashtra, India

Date of Appointment :

13.09.2014

DIN No.:

06426040

 

 

MAJOR SHAREHOLDERS

 

NOT DIVULGED 

 

 

BUSINESS DETAILS

 

Line of Business :

Providing Mobile Money Transfer and Payment Services.

 

 

Products / Services :

Mobile Money Transfer and Payment Services

 

 

Brand Names :

--

 

 

Agencies Held :

--

 

 

Exports :

Not Divulged 

 

 

Imports :

Not Divulged 

 

 

Terms :

 

Selling :

Not Divulged 

 

 

Purchasing :

Not Divulged 

 

PRODUCTION STATUS – NOT APPLICABLE 

 

 

GENERAL INFORMATION

 

Suppliers :

Reference :

Not Divulged 

Name of the Person :

Not Divulged 

Contact No.:

Not Divulged 

Since How Long Known :

Not Divulged 

Experience :

Not Divulged 

Maximum Limit Dealt :

Not Divulged 

 

 

Customers :

Reference :

Not Divulged 

Name of the Person :

Not Divulged 

Contact No.:

Not Divulged 

Since How Long Known :

Not Divulged 

Experience :

Not Divulged 

Maximum Limit Dealt :

Not Divulged 

 

 

No. of Employees :

Information denied by management

 

 

Bankers :

Banker Name

 

Branch Address

 

Person Name (With Designation)

 

Contact Number

 

Name of Account Holder

 

Account Number

 

Account Since (Date/Year of Account Opening)

 

Average Balance Maintained (If Possible)

 

Credit Facilities Enjoyed (If any)

 

Account Operation

 

Remarks (If any)

 

 

 

Facilities :

--

 

 

 

Auditors :

Not Divulged 

 

 

Memberships :

--

 

 

Collaborators :

--

 

 

Sister Concern :

Not Divulged 

 

 

CAPITAL STRUCTURE

 

Authorised Capital : Rs.3500.000 Millions

 

Issued, Subscribed & Paid-up Capital : Rs.500.000 Millions

 

 

 

 


FINANCIAL DATA

[all figures are in Rupees Millions]

 

NEW BUSINESS

 

 

LOCAL AGENCY FURTHER INFORMATION

 

CURRENT MATURITIES OF LONG TERM DEBT DETAILS NOT AVAILABLE

 

Sr. No.

Check List by Info Agents

Available in Report (Yes / No)

1]

Year of Establishment

Yes

2]

Locality of the firm

Yes

3]

Constitutions of the firm

Yes

4]

Premises details

No

5]

Type of Business

Yes

6]

Line of Business

Yes

7]

Promoter's background

Yes

8]

No. of employees

No

9]

Name of person contacted

No

10]

Designation of contact person

No

11]

Turnover of firm for last three years

No

12]

Profitability for last three years

No

13]

Reasons for variation <> 20%

-----------

14]

Estimation for coming financial year

No

15]

Capital in the business

Yes

16]

Details of sister concerns

No

17]

Major suppliers

No

18]

Major customers

No

19]

Payments terms

No

20]

Export / Import details (if applicable)

No

21]

Market information

----------

22]

Litigations that the firm / promoter involved in

----------

23]

Banking Details

No

24]

Banking facility details

No

25]

Conduct of the banking account

----------

26]

Buyer visit details

----------

27]

Financials, if provided

No

28]

Incorporation details, if applicable

No

29]

Last accounts filed at ROC

No

30]

Major Shareholders, if available

No

31]

Date of Birth of Proprietor/Partner/Director, if available

No

32]

PAN of Proprietor/Partner/Director, if available

No

33]

Voter ID No of Proprietor/Partner/Director, if available

No

34]

External Agency Rating, if available

No

 

 

NO CHARGES EXIST FOR THE COMPANY

 

 

NEWS:

 

A NEW ATTEMPT AT FINANCIAL INCLUSION


Mumbai from the northern state of Uttar Pradesh. He supports himself and his family back home by driving a taxi in the city. Every week, he ensures that he sends at least Rs.0.001 Million to his wife back home in Gorakhpur. But there is a hitch.

 

Since he does not have a permanent residence in Mumbai, he does not have a bank account in the city; so every time he wants to send money home, he approaches the local post office, which charges an exorbitant Rs.50 for every Rs.0.001 Million he sends home. The charges are expensive, he says, but adds that he has to pay a fee to ensure that his family receives the money safely and within a set time frame.

 

It is people like Gupta that the Reserve Bank of India’s (RBI) new norms on payments banks seek to serve.

 

In draft guidelines released last month, the central bank envisaged a new category of banks to provide limited services such as accepting savings deposits and remittances, particularly in rural areas.

 

These banks have been designed to provide basic banking services like deposits and remittances to people who deal with small amounts. These banks are needed to have a wide network of branches or access points, particularly in remote areas, and have to keep costs low by using technology in order for their services to be accessible to a larger number of people.

 

Mobile telephone companies with their extensive network in both urban as well as rural areas, banking correspondents because of their experience in providing banking services to the rural areas, and supermarket chains because of the economies of scale this new business brings to them are considered frontrunners to open these payments banks.

 

Saurabh Tripathi, partner and director, Boston Consulting Group (BCG), said the idea for a new type of bank to speed up financial inclusion is a good one, but in its present form, it is difficult to see these banks making lots of money.

 

Telecom players are best suited for this business because they have got the infrastructure in place with millions of customers and this is a good fit for their business. Stand-alone players will not do that well as profitability is an issue since lending is not allowed. The business will have to be innovative in keeping costs low and churning out products and services which will attract enough customers. Innovation will be key to financial inclusion,” Tripathi said.

 

Mobile companies such as Vodafone Plc and Bharti Airtel Limited have got a head-start against their competitors as they are already servicing people in rural areas through their mobile wallet products, namely, M-Pesa and Airtel Money.

 

Vodafone has 65,000 agents across India and 1.4 million M-Pesa customers as of March 2014, while Airtel has 1.7 million subscribers using its money transfer services, according to information available on their websites.

 

Vodafone did not comment on the payments bank proposal because “the formal guidelines on payments banks are still awaited”. Airtel did not respond to an email seeking comment.

 

However, replying to a specific query on financial inclusion in the context of the new guidelines, a Vodafone spokesperson replied via email that M-Pesa’s current focus is on “the under-banked and under-served customers and, accordingly, most of the customers will be always from the bottom of the pyramid segment in the country”.

 

“However, we are also looking at aligning this service to our corporate customers who would either like to use this for enabling electronic payments to/from their stakeholders in deep rural geography where there is absence of bank branches. Vodafone M-Pesa, with its deep rural agent network, completes the last mile for these enterprises,” the spokesperson said.

 

Tripathi from BCG says the companies which innovate in payment products only stand the chance to be successful in the business. However, it is quite possible that these innovations rub off on existing commercial banks in India, which in turn, could lower costs of banking services and improve the quality of banking in the country. Diwakar Gupta, a former managing director and chief financial officer at State Bank of India and currently an adviser to Aditya Birla Group for its banking entry, puts telecom companies, convenience stores and online shopping portals as the likely front-runners for this venture. Among the three, he says, telecom companies are “the best suited” for this business; “they have the relevant infrastructure of network and touch points.”

 

However, large retailers are also likely candidates. Kishore Biyani, chief executive officer of Future Group, the parent firm of Future Retail Limited which operates the Big Bazaar and Food Bazaar retail chains, has stated his inclination towards the new type of banks. “We have always been keen and feel the draft guidelines are tailor-made for us. Once the policy is out, we will be the first ones to launch operations,” he told Mint last month. The draft guidelines are open for public comments till the end of the month.

 

Pawan Agrawal, senior director, ratings at Crisil Limited, said financial inclusion in India has so far fallen short of target because it was too branch-centric, with only 100,000 branches trying to reach six lakh villages. The new banks will be different because they will take banking to where people are staying.

 

“They have a high chance of working because mobile phone companies, for example, have a deeper reach than banks. They will offer limited services in places where banks have not reached. They will have to leverage technology, especially for authentication purposes at their touch points. Mobile companies are expected to start and scale up quickly because they have both the technology and the network,” Agrawal said. A However, there are doubts on the profitability of these banks because they require a large investment upfront. The norms do not allow them to give loans and they can invest only in government securities. “They have to earn primarily through charging customers and yet ensure that enough customers use their services,” Agrawal said.

 

Payments banks are also not allowed to keep deposits more than Rs.1 lakh in their accounts, which will also limit their funds.

 

Former SBI executive Gupta said the restrictions on these banks will substantially curtail their profitability. “These banks’ annual profit will not exceed Rs.700.000 Millions - Rs.1000.000 Millions. They will have to earn additional revenue by selling insurance and micro systematicinvestmentplans and, of course, bill payments,” Gupta said, adding that the restricted profits will dissuade large companies from getting into this business.

 

“These banks will be squeezed on rates because they will have to offer interest rates which are competitive, compared with the other banks already present and given that they cannot lend, it will impact their margins,” Gupta said.

 

Some like former Syndicate Bank chairman and managing director N.K. Thingalaya are sceptical about the need for a new type of banks. An expert in rural banking, Thingalaya is of the view that the central bank should use the different existing types of banks to promote financial inclusion.

 

“India has 57 Gramin Banks which service the remote villages of this country. They are all computerized and connected by core banking solutions and all barring one are profitable. Why not open more such banking outlets? The thing with opening new banks is, it is unclear whether the new banks will be self-sustaining. Instead, why not improve the products we already got?” Thangalaya asks.

 

“My study shows that Gramin Banks have done a better job than micro-finance companies at a modest profit. The government could give incentives to such banks, like allowing them to run from government premises which will help further financial inclusion,” said Thingalaya, who earlier this year authored the book Gramin Banks Revisited.

 

He pointed out that though financial products like money orders are still used to send and receive money across the country, there has been no effort to improve that product. He would rather have the Reserve Bank of India innovate these products than open a new set of banks which are unknown entities. But Tripathi of BCG says new banking innovation is key if India has to achieve its targets in financial inclusion. The progress from these banks could also be copied by established banks in India, multiplying their future success rate.

 

Tripathi feels the entry of payments banks will ultimately help improve the overall quality of banking in India. If that happens, people like Ramcharan will have reason to smile



PAYMENT BANK: TELCOS SEEM ATTRACTED IN THE SEGMENT

 

However, despite infra and network in place, doubts on extent and timeline on revenue generation, apart from competition

 

After the final guidelines from the Reserve Bank of India (RBI), every telecom operator in the country seems interested in applying for a payment banks licence.


About 40 per cent of India’s 1.2 billion people are unbanked but 80 per cent use a mobile phone. So, telecom operators would have a natural advantage in getting these people to itspayment bank entities.


Some telcos already offer mobile wallet (m-wallet) services. Bharti Airtel, Vodafone India, Idea Cellular, Tata Teleservicesand Aircel, for instance, with a pan-India presence. Regional entities such as Uninor and Sistema Shyam Teleservices are also studying the possibilities, to tap the potentially lucrative business segment.


A Mumbai-based equity analyst says it would also create a good opportunity for Reliance Jio Infocomm, which is yet to start commercial operations, as this might be an avenue for the Reliance Group to explore the finance sector.

There are different views on the financial gains. Rajan Mathews, director-general, Cellular Operators Association of India (COAI), pegs it at around five per cent when the payment banks business for telcos get a scale. For, it would primarily be restricted to cash-out transactions and bill payments in the initial years.


Equity research firm Credit Suisse had, after the initial guidelines, pegged mobile payments to be only 1-1.2 per cent of telecom sector revenue. On a more liberal view, it said in its note, it could also be a “seven-eight per cent revenue upside”.


CRISIL Research, on Friday, said telecom operators were ideal candidates to set up payment banks, considering their customer base and distribution networks in rural areas. Bharti Airtel, Vodafone India, Idea Cellular and Aircel have been offering mobile wallet services for remittances. Value transactions through m-wallet, CRISIL said, had more than tripled in two years to Rs.27000.000 Millions in 2013-14, indicating the huge business potential.


However, CRISIL further said, payment banks as a segment are “unlikely to add significantly to the top line of telecom operators”. The research firm believes even five years after launch, the contribution of payment banks to their overall revenues would be less than one per cent.


“While telecom operators are likely to capture around 15 per cent of the domestic remittances market by then, luring deposits is another ball game altogether because they will have to invest in brand building and gain the trust of depositors. As a result, we forecast payments banks will have a minuscule share of less than 0.5 per cent of the current and savings account deposits of the Indian banking system five years after launch,” it said.


According to Jaideep Ghosh, partner, KPMG in India, telecom companies can start the service as soon they get a licence, as they already have the infrastructure and network in place. “They also are used to running a low-margin and high-volume business. It certainly opens an avenue for revenue generation for the companies. On the other hand, there would be a lot of new entrants,” he added.


However, Ghosh also noted, a payment bank as a vehicle for financial inclusion could clash with the other schemes the government floated recently, such as the Jan Dhan Yojana.


As a payment bank, telcos will be able to accept deposits and remittances but cannot lend.


 Bharti Airtel and Vodafone India, the country’s top two cellular operators by subscriber base, already offer payment instruments — Airtel Money and Vodafone M-Pesa. However, these companies can’t offer transactions that involve cash transfer, owing to regulatory restrictions.


“We are evaluating the detailed document and a decision will be taken after due assessment of the new norms. Telenor Group offers successful mobile banking solutions extending the benefits of banking to the unbanked in other Asian and European countries,” said a spokesperson at Uninor.


Spokespersons at Bharti Airtel, Vodafone, and Idea Cellular declined to comment on the issue, saying the detailed guidelines were being examined.


Pramod Saxena, founder of m-wallet service provider Oxigen Services India, said: “There are a lot of positives for the sector and, overall, the final policy is in line with considering m-wallet as serious business, developed over a period of time.”


An independent m-wallet service provider would have an edge over telcos and other new entrants, he added, as the operational dynamics were different.


“The move will boost mobile banking services and financial inclusion. Mobile payments could not be expanded as telcos were unable to offer cash-out transactions. Though RBI’s proposals don’t allow telecom operators to set up banks to lend, we believe they will allow cash-out transactions, which enable a consumer to withdraw at any location. This can be a game-changer to boost mobile payments and financial inclusion in India as in Africa,” said Mathews of COAI.


He said the rules that restrict 100 per cent ownership of foreign entities were a dampener for telecom operators, as they need to get a partner for this business.


“The licence to operate as a payment bank solves this problem,” said a senior executive of a telecom operator. “M-wallet did not take off properly so far as there was no real cash transaction. The retail network and infrastructure is in place for these companies. They just need to get the licence to operate as payment banks.”


As payment banks would be able to invest in government bonds, this would enable telcos to offer higher interest rates on deposits and this might attract inactive money parked in savings bank accounts.

 

 

MOBILE WALLET MARKET TO CROSS RS.12000.000 MILLIONS BY 2019

 

GUWAHATI: The infant mobile wallet market in India is estimated to grow over three-fold to Rs.12100.000 Millions in the next five years, buoyed by rising smartphone users and entry of newer players into the sector.

 

According to a study by research and consultancy firm RNCOS, the current Indian market size for mobile wallet (m-wallet) stands at about Rs 3500.000 Millions and is estimated to rise to Rs.12100.000 Millions by 2019.

 

"M-wallet market is projected to grow at a CAGR of around 30 per cent in the next five years from 2015-2019.

 

This is mainly due to increase in the demand for smartphones, which is estimated to grow at a higher pace, and rising mobile internet users, which has grown at 92 per cent in 2013," RNCOS said in the report.

 

Any smartphone user can install m-wallet application in the handset and can create own log in account.

 

They will get a permanent pin number for utilising m-wallet services.

 

RNCOS said: "M-wallet has a high capacity as an alternative to traditional and current payment systems in India. Growth observed in m-commerce sector in India has moved its payment systems to mobile devices."

 

Some other reasons attributed to the high growth of the segment include higher working population engaged in banking and online purchasing of products, discounts offered by firms to attract customers in festive seasons for purchase through m-wallet and expansion of service portfolios by the companies.

 

Market of m-wallet segment includes transferring of money, services related to banking transactions, value added services such as shopping, ticketing, recharging and bill payments, the study pointed out.

 

In the segment, the highest 38 per cent market share is captured by money transfer businesses, followed by recharge and bill payments and utilities areas by 30 per cent and 12 per cent respectively. Others enjoy 20 per cent market share.

 

Despite its promising future, the m-wallet segment is facing challenges in India such as alternative money transfer channels, lack of awareness, stringent policies on restriction of cash-out facility, low margins and poor internet connectivity in many areas, the study said.

 

Some of the major m-wallet players are Airtel MoneymRupeeVodafone m-Pesa, Oxigen Wallet, Paytm, Mobikwik and Idea Money.

 

 

VODAFONE M-PESA COMES TO EUROPE FOR THE FIRST TIME

 

31 March 2014

 

Vodafone M-Pesa - the mobile money transfer and payment service that has transformed the lives of millions of people in emerging markets - has come to Europe for the first time.  

 

M-Pesa, which launches in Romania today, will offer simple, safe and secure mobile money transfer and payment services to approximately seven million Romanians who transact mainly in cash. The service also offers banked customers the convenience of being able to access and transfer money via the mobile phone.

 

M-Pesa is based on simple text messaging technology and operates over any of Vodafone Romania’s mobile network connections, including 4G services which launched in 2012. Romanian M-Pesa customers will be able to transfer as little as one new Romanian leu (0.22 euro cents) up to 30,000 lei (€6,715) per day.  

 

Vodafone Director of Mobile Money Michael Joseph said: “The majority of people in Romania have at least one mobile device, but more than one third of the population do not have access to conventional banking. Vodafone M-Pesa is already used regularly by nearly 17 million customers and we look forward to bringing the significant benefits of the service to the people of Romania.”

 

From today, Vodafone M-Pesa can be activated at any one of around 300 Vodafone Romania stores and participating retail outlets as well as through authorised agents, and will be accessible to approximately six million people in both rural and urban areas.  It will be extended to other parts of the country, comprising a total of 2,000 retail and distribution points of presence by the end of 2014.

 

M-Pesa also will allow Vodafone Romania’s customers to top up pre-pay airtime on a mobile device, pay utility bills, make a deposit and withdraw cash from participating agents, and purchase goods such as flowers, a newspaper and a coffee.  

 

 

ICICI BANK AND VODAFONE INDIA LAUNCH 'M-Pesa'

 

April 17, 2013

 

A unique service to transfer money and make payments via mobile phone

 
Kolkata: ICICI Bank, India's largest private sector bank and Vodafone India, one of India's leading telecommunications service providers, today announced the successful launch of 'M-Pesa' - a unique mobile money transfer and payment service. 'M-Pesa' is the trademark of Vodafone. The service was launched in Kolkata by Rajiv Sabharwal, Executive Director, ICICI Bank and Marten Pieters, MD & CEO, Vodafone India Limited.
 
'M-Pesa', which is being launched initially in the eastern parts of the country, effectively leverages the combined strengths of Vodafone's global expertise in the domain of mobile payments and significant distribution reach in India plus the security of financial transactions provided by ICICI Bank. It is initially being offered in Kolkata, West Bengal, Bihar and Jharkhand through over 8300 specially trained authorized agents and will soon be rolled out across the country in a phased manner.


The innovative use of mobile technology makes it possible for customers to enjoy a fast, simple and secure way to transfer money and make payments. Using their 'M-Pesa' account, customers can at their convenience:

 

·         Deposit and withdraw cash from designated outlets

·         Transfer money to any mobile phone in India

·         Remit money to any bank account in India

·         Make payments to recharge mobile, clear utility bills and for DTH service subscription

 

Shop at select shops

 

Participate in e-commerce/m-commerce

 

Rajiv Sabharwal, Executive Director, ICICI Bank said, "ICICI Bank has been at the forefront of technological innovations in banking. With the launch of 'M-Pesa', the Bank now offers a unique and innovative service that provides basic banking facilities to millions of Indians who still depend on informal channels for their banking needs. We are very happy with the partnership with Vodafone as the tie-up will effectively leverage the security of financial transactions provided to customers by ICICI Bank and the strengths of Vodafone's significant distribution reach. This launch is line with the Bank's objective of achieving greater financial inclusion. It also enriches the Bank's existing suite of mobile banking offerings."

 
Marten Pieters, Managing Director & CEO, Vodafone India said, "Vodafone is the world's largest and leading provider of mobile payment services using 'M-Pesa', which offers millions of people basic financial services, beyond the reach of traditional banking. Mobile technology has a critical role to play in servicing the unbanked and underserviced sections of the society and we are delighted to introduce this world class offering in India in partnership with ICICI Bank. Using 'M-Pesa', we will provide people in remote areas a convenient way to bank, transfer money and make payments in a safe and secure manner. We have customized our offering to serve the needs of Indian customers while ensuring its compliance with all applicable regulations. Financial inclusion is a national priority and we believe that with 'M-Pesa', we now have the ideal offering to enable the same."

 
In November 2012, Vodafone India through its 100% subsidiary, Mobile Commerce Solutions Limited. ("MCSL") and ICICI Bank had announced a strategic alliance to launch mobile payment services, under the brand name 'M-Pesa'.
 

VODAFONE LAUNCHES M-PESA MOBILE WALLET SERVICE IN AP

 

It will be available across 23 districts through 3,826 authorised agents

 

Telecom operator Vodafone, in collaboration with ICICI Bank, completed the pan-India rollout of M-Pesa, its mobile moneytransfer and payment platform, with the launch of the service in the Andhra Pradesh market on Wednesday.

The mobile wallet platform, which also offers out-cash services, enables to deposit and withdraw cash from designated outlets, transfer money to any mobile phone or remit money to any bank account in India, make payments to recharge mobile, clear utility bills and for DTH service subscription.


“With this launch, M-Pesa is now present across 60,000 agent outlets, covering over 1.2 million customer’s pan-India. In Andhra Pradesh, it will be available across 23 districts through 3,826 authorised agents, including over 700Vodafone exclusive stores,” said Mandeep Singh Bhatia, business head (Andhra Pradesh), Vodafone.


Stating that Vodafone covered 75 per cent of the Andhra Pradesh population and covering more than 11,000  towns and villages through over 1,000 exclusive outlets, Bhatia said educational hubs like Hyderabad, Warangal, Vizag, Vijayawada and Guntur, and industrial and defence bases would be the M-Pesa opportunity in the state. The company is seeing a 25 per cent month-on-mnth growth in M-Pesa customer base.


According to Suresh Sethi, business head (M-Pesa), Vodafone India, the platform is currently facilitating National Rural Health Mission (NHM) disbursements in Bihar and Jharkhand on a pilot basis.


“We will initiate discussions with other state governments for similar arrangements once these pilots are successfully rolled out,” he said, adding that while M-Pesa was available in Hindi, Bengali, Marathi, Gujarati and English, and they would consider adding more languages in a phased manner.


M-Pesa was originally launched in Kenya, a country with a population of 40 million, nine years ago. Currently, one-third of its Gross Domestic Product flows through M-Pesa. The service is prevalent in nine emerging countries.

 

 

 


CMT REPORT (Corruption, Money Laundering & Terrorism]

 

The Public Notice information has been collected from various sources including but not limited to: The Courts, India Prisons Service, Interpol, etc.

 

1]         INFORMATION ON DESIGNATED PARTY

No exist designating subject or any of its beneficial owners, controlling shareholders or senior officers as terrorist or terrorist organization or whom notice had been received that all financial transactions involving their assets have been blocked or convicted, found guilty or against whom a judgement or order had been entered in a proceedings for violating money-laundering, anti-corruption or bribery or international economic or anti-terrorism sanction laws or whose assets were seized, blocked, frozen or ordered forfeited for violation of money laundering or international anti-terrorism laws.

 

2]         Court Declaration :

No exist to suggest that subject is or was the subject of any formal or informal allegations, prosecutions or other official proceeding for making any prohibited payments or other improper payments to government officials for engaging in prohibited transactions or with designated parties.

 

3]         Asset Declaration :

No records exist to suggest that the property or assets of the subject are derived from criminal conduct or a prohibited transaction.

 

4]         Record on Financial Crime :

            Charges or conviction registered against subject:                                                           None

 

5]         Records on Violation of Anti-Corruption Laws :

            Charges or investigation registered against subject:                                                        None

 

6]         Records on Int’l Anti-Money Laundering Laws/Standards :

            Charges or investigation registered against subject:                                                        None

 

7]         Criminal Records

No available information exist that suggest that subject or any of its principals have been formally charged or convicted by a competent governmental authority for any financial crime or under any formal investigation by a competent government authority for any violation of anti-corruption laws or international anti-money laundering laws or standard.

 

8]         Affiliation with Government :

No record exists to suggest that any director or indirect owners, controlling shareholders, director, officer or employee of the company is a government official or a family member or close business associate of a Government official.

 

9]         Compensation Package :

Our market survey revealed that the amount of compensation sought by the subject is fair and reasonable and comparable to compensation paid to others for similar services.

 

10]        Press Report :

            No press reports / filings exists on the subject.


 

CORPORATE GOVERNANCE

 

MIRA INFORM as part of its Due Diligence do provide comments on Corporate Governance to identify management and governance. These factors often have been predictive and in some cases have created vulnerabilities to credit deterioration.

 

Our Governance Assessment focuses principally on the interactions between a company’s management, its Board of Directors, Shareholders and other financial stakeholders.

 

 

CONTRAVENTION

 

Subject is not known to have contravened any existing local laws, regulations or policies that prohibit, restrict or otherwise affect the terms and conditions that could be included in the agreement with the subject.

 

 

FOREIGN EXCHANGE RATES

 

Currency

Unit

Indian Rupees

US Dollar

1

Rs.62.39

UK Pound

1

Rs.94.17

Euro

1

Rs.73.61

 

 

INFORMATION DETAILS

 

Information Gathered by :

DIP

 

 

Analysis Done by :

SUB

 

 

Report Prepared by :

VNT


 

RATING EXPLANATIONS

 

 

RATING

STATUS

 

 

PROPOSED CREDIT LINE

>86

Aaa

Possesses an extremely sound financial base with the strongest capability for timely payment of interest and principal sums

 

Unlimited

71-85

Aa

Possesses adequate working capital. No caution needed for credit transaction. It has above average (strong) capability for payment of interest and principal sums

 

Large

56-70

A

Financial & operational base are regarded healthy. General unfavourable factors will not cause fatal effect. Satisfactory capability for payment of interest and principal sums

 

Fairly Large

41-55

Ba

Overall operation is considered normal. Capable to meet normal commitments.

 

Satisfactory

26-40

B

Capability to overcome financial difficulties seems comparatively below average.

 

Small

11-25

Ca

Adverse factors are apparent. Repayment of interest and principal sums in default or expected to be in default upon maturity

 

Limited with full security

<10

C

Absolute credit risk exists. Caution needed to be exercised

 

 

Credit not recommended

NB

NEW BUSINESS

 

 

 

 

 

 

 

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.