Wallet startup TMW Fintech is in danger of bankruptcy

TMW Fintech purchased goods from MCT Cards & Technology Pvt Ltd. Ltd., a Manipal-based provider of SIM cards and smart cards for biometric identification and payment facilitation. In 2019, MCT Cards took TWM Fintech to NCLT for defaulting on repayment ₹38 lakhs and pressed for its liquidation.

“The Operational Creditor (MCT Card) had issued various invoices against the Corporate Debtor (TMW Fintech). The total amount of challans raised between October 2018 and August 2019 is ₹83.36 lakh,” said the NCLT order dated October 8. Out of this, TMW paid ₹45 lakh but failed to pay the rest, the order said. “Despite the creditor is clear that the debtor repeatedly given assurances, the debtor is liable for the ending / liquidate as unable to pay its operating debt and therefore the law.”

Pramod Dattaram Rasam has been appointed as Interim Resolution Professional to manage the insolvency process.

TMW Fintech, formerly called The Mobile Wallet Pvt. Ltd, was founded in 2015 by second generation entrepreneur Vinay Kalantri as his third venture. Last May, Kalantri founded a fourth firm called Q Processing Services. Vinay’s father, the Chairman and Managing Director of Balaji Infra Projects Limited, Vijay G. Kalantri also found herself in bankruptcy courts earlier, with one of her promoted firms, Dighi Port, going into bankruptcy. The port was acquired by Adani Ports and Special Economic Zone Ltd earlier this year.

TMW Fintech is not announced publicly by external funding and offer valet-linked prepaid card powered by global payments company MasterCard.

TMW Fintech was doing well till three years ago. In early 2018, it acquired Gurugram-based Proteins Infotech Pvt. Ltd., which operates the payments platform TruePay. The Trupe investment in the Mumbai-based early stage investor Kei Capital and Singapore-based venture capital firm M & S Partners Pte Ltd was supported by the initial phase of Southeast Asian companies.

A year later, TMW Fintech launched the 2-in-1 Travel Metro Smart Card in association with Reliance Infrastructure Limited’s Mumbai Metro One. However, the mobile wallet firm has not been active for some time now.

TMW Fintech could not be reached for comment. Emails sent to Vinay Kalantri’s new firm, MCT Cards and Resolution Professional, remained unanswered till press time.

This is another instance where a fintech firm has been referred to bankruptcy courts. Last year, Kalaari Capital-backed Rubik Technologies India was admitted to the NCLT by another Mumbai bench on a plea by its former employee. Manav Jeet, Founder, Managing Director and Chief Executive Officer, Rubik Technologies did not elicit any response to calls.

In the meantime, have been said a person familiar with the development and filing claims against Timdblu Fintech, and are hopeful for a solution under the MCT card IBC process.

Bankruptcy tribunal has ordered that “the supply of corporate debtors required goods or services, if persist, the moratorium is terminated or suspended or will not be interrupted during the period”.