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- Mitsui & Co., Ltd.
Corporate Communications Division
Mitsui & Co., Ltd. ("Mitsui," head office: Chiyoda-ku, Tokyo, President: Masami Iijima) has acquired an equity stake in Suvidhaa Infoserve Pvt. Ltd. with the aim of establishing a presence in the field of payment collection services, which are used in India to pay mobile telephone and public utility charges and other bills. After the signing of an agreement concerning the acceptance of a new share issue on October 20, Mitsui invested US$12 million in Suvidhaa Infoserve.
Suvidhaa Infoserve provides Internet-based payment collection services for various industries, including mobile telephone services, electric power, gas, insurance and e-commerce. Currently, 45,000 retail outlets serve as cash collection points, but the company plans to increase the number of collection points to 100,000 over the next two years and to expand its services throughout India.
Fewer than 30% of Indians have bank accounts and furthermore the diffusion rate for credit cards is below 3%. Banking services are still not widely available, and there is a growing need for payment methods that offer greater convenience than bank settlements or over-the-counter payments. Mitsui has decided to participate in the on-line payment collection business in India, both because of the social value of providing a new payment method for the general public in partnership with the World Bank Group, and also because of the opportunity to expand from payment collection services into related areas, such as domestic remittance, e-wallet and mobile payment services, through the introduction of advanced Internet technology.
One of the priority policies identified in Mitsui's medium-term management plan calls for accelerated globalization and strategic redeployment of resources. The priority markets targeted under this policy are the BRICS, Indonesia and Mexico. Through its participation in this business, Mitsui aims to provide Indian consumers with access to payment methods and to use the business as a hub for the creation of value in the field of e-commerce and other consumer services.
Suvidhaa Infoserve provides payment collection tools for a wide range of consumer services, including not only mobile telephone services, as mentioned above, but also public utilities and e-commerce. Its main service for its business customers, which include mobile telephone carriers and e-commerce merchants, is payment collection. As of September 30, 2011, there were approximately 7 million registered users in India.
|Company name||Suvidhaa Infoserve Private Limited|
|Representative||Paresh Rajde, Founder & Managing Director|
|Main shareholders||Founder, Norwest Venture Partners, Reliance Capital Limited, World Bank International Finance Corporation (IFC)|
This announcement contains forward-looking statements. These forward-looking statements are based on Mitsui's current assumptions, expectations and beliefs in light of the information currently available to it and involve known and unknown risks, uncertainties and other factors. Such risks, uncertainties and other factors may cause Mitsui's actual results, financial position or cash flows to be materially different from any future results, financial position or cash flows expressed or implied by these forward-looking statements. These risks, uncertainties and other factors referred to above include, but are not limited to, those contained in Mitsui's latest Annual Securities Report and Quarterly Securities Report, and Mitsui undertakes no obligation to publicly update or revise any forward-looking statements.
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