Indian offline-to-online commerce platform DotPe has bagged $58m in a Series B round led by investment company Temasek.

Existing investors of the firm including Prosus’ payments and fintech unit PayU, InfoEdge Ventures along with new investors Mitsubishi and Naya Capital also joined the fundraising.

Using the fresh infusion, DotPe plans to roll out new financial services such as business-to-business (B2B) neobanking tools and facilitate lending for merchants.

DotPe co-founder and CEO Shailaz Nag said: “We started DotPe with a vision of becoming the primary enabler and disruptor in the O2O commerce segment.

“Our company has had a great run so far. However, existing merchants are barely the tip of the iceberg in terms of the market opportunity – there are millions of offline businesses in India waiting for simple, effective & affordable tech-led tools to scale.”

Nag told Moneycontrol that the company aims to expand its merchant portfolio from the existing 7.5 million to 20 million over the next two to three years.

Jointly established by Nag and ex-PayU executives Gyanesh Sharma and Anurag Gupta in 2020, DotPe offers businesses comprehensive solutions to digitise their online exposure.

The firm supports both in-store and remote ordering in addition to online payments, online marketing and delivery.

PayU global head of strategy and growth Vijay Agicha said: “We have been associated with DotPe since its inception and believe in its potential to fundamentally transform daily operations for businesses in India.

“There are synergies between PayU’s vision for a holistic Indian merchant ecosystem and DotPe’s phenomenal work in digitising this space.”

In March last year, DotPe raised $27.5m in a Series A funding round led by PayU.