Obopay

Investment date: Jul 2007; Apr 2008
Percent stake: 1.2%
Type of Investment:  Primary
Sector:  Mobile Payments
Website: www.obopay.com

Based in California, Obopay, is a specialist provider of mobile payment technology and services which allows individuals to instantly transfer, credit, and debit money anywhere, at anytime, using their mobile phone. Obopay has developed strategic relationships with key players in the financial, telecommunications and technology industries (such as MasterCard, Citibank, AT&T, Verizon, Fidelity, Essar Group and Nokia), which provide it with access to a large and diversified customer base, strong co-branding and marketing opportunities and the potential to scale its business quickly. 

Already operating in the US, Obopay is targeting expansion in the emerging markets, where the lack of traditional telecommunications and payments infrastructure, coupled with high mobile phone penetration, present an ideal opportunity for its business. With 300 million mobile users, and a further 8 million added every month, India is one of the largest mobile markets in the world. To develop its business further in India, Obopay has established a number of strategic tie-ups with leading Indian financial institutions, including Yes Bank, which has already made Obopay services available to its customers.  Most significantly, Nokia has invested a total of US$70m in several tranches between February 2009 and January 2010, and "Nokia Money" a mobile money transfer platform, will be rolled out in selected markets in India, commencing early 2010.  From December 2009, Obopay technology was made available on some Apple iPhones, for use in the US, and in the same month, Obopay was selected as 2010 Technology Pioneer by the World Economic Forum, in recognition of its innovation, transformational technology, leadership and substantial long term impact on businesses and society.  It was one of just 26 companies to receive such an award. 

In July 2007, Elephant Capital invested £0.7 million in a heavily over-subscribed Series "C" financing which raised US$29 million; US$20 million was further raised in a Series “D” Preferred Stock offering, in which Elephant Capital invested £0.5 million.