Gurugram-headquartered digital payments company MobiKwik is now raising a fresh round of funding, from multiple investors in debt and equity deal
According to the ministry of corporate affairs filings accessed by Inc42, the company is raising INR 223 Cr ($29.56 Mn) from investors. Firstly, Cayman Island-based LP named MK SPV IX has been issued 1,17,585 debentures at a price of INR 9,440 for INR 111 Cr.
Further, MK SPV IX has also been offered a 1 share warrant worth INR 75 Cr, It has also picked up 39,185 CCPS and 10 equity shares at a value of INR 9440 per share worth INR 37 Cr. The development was first reported by Entrackr.
Prior to this, MobiKwik has raised $101 Mn in funding from Sequoia Capital, American Express, Bajaj Finserv etc.
Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik has gone from being a digital wallet to a horizontal fintech platform. It claims to have over 110 Mn users and 3 Mn merchants today. In October 2018, MobiKwik added multiple financial services to its platform including credit, insurance, gold loans, and mutual funds. This was in addition to bill payments, B2B payments gateway, and digital payments services.
In terms of targets, the company is said to be on track for $70 Mn in revenue for FY20 and aims to reach a $100 Mn revenue mark in the next four to five months.
MobiKwik achieved operational breakeven in FY2019 along with earning gross revenue of INR 184.6 CR. This was a significant leap from the company’s INR 69.29 Cr revenue in March 2018.
Out of its wide service portfolio, the credit business is said to be making the most revenue for the company. MobiKwik claims to have disbursed 1.2 Mn loans, amounting to $152 Mn. The company is targeting the middle-income users of India who are underserved by the existing bank ecosystem. The loan size ranges from INR 2.5K to INR 5 Lakh.
Upasana Taku, cofounder, MobiKwik had told Inc42, “Our dream is to reach a decacorn valuation in the public markets, where a common retail shareholder is willing to buy our share at a fair price. And this is something that we will have to learn from the stalwarts of financial services.”
India is expected to clock the fastest growth in digital payments in terms of transaction value between 2019 and 2023 with a compounded annual growth of 20.2%, according to an Assocham-PWC India study. It said that the exponential rise in online transactions is due to the dual factors of demonetisation and discounts through digital payment options on ecommerce platforms.