Done Card in talks with VC firms

Mumbai-based Done Card Utility Ltd is in talks with US-based venture capital firms for funding its expansion plans in payment gateway services. The company is expected to sign a deal by the end of the current financial year.

Refusing to divulge the names of the venture capital firms, Subhash Jaweria, managing director, Done Card Utility Ltd, said the company would also be utilising the fund for its upcoming businesses.

After launching cash cards for online bookings of rail tickets, airlines and other services, Done Cards is entering into business lead generation through its associate company "" OSS Network Limited.

"To be formed by May, the company will offer business lead generation services to unorganised players across sectors like retail and finance. As part of the services, OSS Network will set up 2,000 shops across the country in the first year of operations on a franchisee model," said Jaweria, who was in Ahmedabad on Sunday.

Done Card Utility is planning to invest around Rs 300 crore in its new business, which is expected to generate about 2.5 million customers.

According to Jaweria, the new service under OSS Network Limited will result in an increase in business of its franchisees by 25-30 per cent.

Through its Done Card online cash card, the company offers online railway and airline ticketing services, apart from mobile recharge and online games.

Recently, the company also launched a new portal on bus operators inventory and online ticketing, similar to one being run by Bangalore-based redBus.

"We expect the new portal on bus operators to generate an initial revenue of Rs 200 crore in the first year of its operations," added Jaweria.

Being unable to achieve an ambitious target of Rs 5,000 crore turnover in 2007-08, Done Card has now set a revised revenue target of Rs 2,500 crore for the fiscal 2008-09. By the next financial year, the company intends to enter the capital market with an initial public offering, said Jaweria.