MobiKwik Is Raising Nearly $30 Mn To Fuel Growth Plans

MobiKwik Is Raising Nearly $30 Mn To Fuel Growth Plans

SUMMARY

The deal includes debt and equity funding

MobiKwik has raised $101 Mn in funding before this round

MobiKwik claims to have over 110 Mn users

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.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
Unlock 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
Unlock 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

MobiKwik Is Raising Nearly $30 Mn To Fuel Growth Plans-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

MobiKwik Is Raising Nearly $30 Mn To Fuel Growth Plans-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

MobiKwik Is Raising Nearly $30 Mn To Fuel Growth Plans-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

MobiKwik Is Raising Nearly $30 Mn To Fuel Growth Plans-Inc42 Media
MobiKwik Is Raising Nearly $30 Mn To Fuel Growth Plans-Inc42 Media
You’re in Good company