Paytm buys Flipkart-funded tech startup Cube26 to boost customer engagement
Paytm on Tuesday announced the acquisition of New Delhi-based technology startup Cube26. The company, which has been funded by Flipkart and Tiger Global, focuses on enhancing user experiences across multiple devices and platforms, with customised applications for Android OS, and has also developed varied applications for OEMs.
During its early days, Cube26 was popular for its customised Android experience, and gesture technologies like “Blink to Capture” and “Look Away to Pause” for OEMs.
Paytm has been building consumer engagement products in the areas of social media and content, and according to a statement, this acquisition will help it by leveraging the work that Cube26 has done in the field. Paytm is focusing on building an immersive, feature-rich mobile experience for its strong user-base.
In an earlier interview with YourStory, Paytm founder, Vijay Shekhar Sharma, had said,
“We are clear that content is an obligation of a customer's daily life. When a consumer opens Paytm for a transaction, we don't want to restrict them to just that. We want to make something available to them so they can keep coming back. That is the obligation which is making us go into content.”
The acquisition of Cube26 is a step towards building engaging content and features to increase stickiness to the app.
Elaborating on its content strategy, Paytm had said it has added a host of new features including Live TV, cricket, entertainment news, and games to its in-app messaging service, Inbox.
Speaking on the acquisition of Cube26, Madhur Deora, Chief Financial Officer, Paytm said, “We are excited to welcome the Cube26 team onboard. We are focused on building a more immersive and feature-rich mobile experience for our large active user-base. With this acquisition, the Cube26 team will work with the Paytm team to add more social engagement features to our products and services.”
Saurav Kumar, CEO and Co-Founder, Cube26 said, “Our team has been building technology products that are used by millions of users. I believe our diversified experience in creating smarter products across software and hardware segment will help add value to Paytm and to several of its products and services.”
To better develop this content strategy, Paytm had, in January, entered into a partnership with Chinese gaming and entertainment company AGTech Holdings Limited, and announced the launch of Gamepind, an innovative mobile platform that offers a host of popular social and casual games. The new entity has AGTech holding 45 percent stake, while Paytm owns 55 percent stake.
In March last year, Cube26 had reportedly shut its IoT business to focus on its software and services business.