Three strategic investors have backed the $5m series B round of US and India-based mobile payments company Tyfone.
HDFC, India’s largest mortgage lender, financial technology services firm Polaris Software Lab and an undisclosed manufacturer backed Tyfone as new investors. Venture capital firm Ojas Venture Partners is also part of the B round consortium but as a repeat investor having backed the company’s undisclosed round in February 2008.
Polaris invested $500,000 for 2.5% of Tyfone, which gave it a potential valuation of $20m, according to news provider Economic Times of India.
Tyfone allows contactless payments onto a MicroSD memory card for mobile phones and other devices and has a partnership with US-based payment processing company First Data.
Tom Spitzer, chief executive of Tyfone, said: "The investors who participated in our series B financing round bring unique expertise within financial services and we will benefit from their knowledge beyond the value of their financial investment in Tyfone."
Srinivasa Rangan, executive director of HDFC, said: "The market for mobile financial services is nascent but significant. HDFC Holdings was impressed with the team, the technology, and patents that Tyfone possesses and we recognize that Tyfone is in a unique position to leverage a global market opportunity."