Mswipe, a Mumbai-based Digi Payment startup made to news recently with respect to its acquisition. Reports had it that the company has 3-4 months of runway left and is looking to be acquired for $200 million. Putting an end to these rumours, CEO Manish Patel denied all such claims. He further explained that company has 36 months of runaway left and they analysed the situation in March itself.
Started in 2011, Mswipe was founded by Manish Patel as point of sales solution for all kinds of payment acceptance. Patel clarified that the company examined its expenses and reviewed them in order to extend the runaway. He also mentioned that Mswipe is not relying on credits for its operations runway but on optimizing expenses.
The process of analyzing company finances began late last year itself. They have been focusing on optimizing the expenses in the company itself. Patel explained that the cost depends on the business and since business is low, the expenditure in itself has come down. The strategy to limit fixed expenses came from company wide pay cuts. Management has taken 50% cut in the salary while others have 30%. There has been a 10% layoff in employees as well which has been based on annual performance review of February.
Though majority of the activity has been shut down for the company amidst lockdown, the kirana stores, pharmacies, hospital and other essential services have still been using Mswipe. Patel hopes to bring Mswipe back in business in another 6-8 months. The company claims to have 50% Y-o-Y growth in FY19. Mswipe is sailing on a rough boat currently but the company seems to have things in control and will be able to go back to its normal state in few months.