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June 10, 2008

Deal Alert: Mobile payments co. PayMate raises $9-M Second Round led by Mayfield Fund

Mumbai-based mobile payments company, PayMate India Pvt. Ltd., today announced the closure of its second round of investment of US$9 million led by Mayfield Fund with participation from existing investors, Kleiner Perkins Caufield & Buyers and Sherpalo Ventures. Nikhil Khattau, Managing Director of Mayfield Advisors, will join the Board of PayMate.

The two year old PayMate operates in the arena of electronic payment solutions to enable transactions on mobile phones and wireless devices for Indian & Global markets. PayMate has ventured into significant tie ups with thirteen Global and Indian Banks - including, amongst others, Corporation Bank, Cosmos Bank, Bank of Ceylon, HDFC, Standard Chartered Bank, Canara Bank, ABN Amro - to introduce unique m-banking solutions for their customers.

PayMate has more recently launched a mobile gift voucher program, Gift Mate, which offers the flexibility and choices that are not available with traditional vouchers. Moreover, it has also allied with telecom service providers like Tata Indicom and airlines like KINGFISHER to enable its subscribers to book flight tickets anywhere, anytime on the mobile. PayMate’s latest initiatives include utility bill and insurance premium payments.

In July 2006, Sherpalo Ventures and Kleiner Perkins Caufield & Byers had invested a total of $5 milllion in PayMate.