Fintech company Bajaj Finserv after an investment of Rs 225-crore in the digital mobile wallet company MobiKwik for an 11% stake has announced its foray into fintech lending business.
Under this strategic partnership, Bajaj Finserv will offer its lending (purchase finance, credit card, mortgage loans and personal loans) and insurance products to be sold through MobiKwik App.
According to the company’s statement, through the app customers will now know the extent of credit they can avail of as against the current practice where shoppers in a retail outlet are offered credit. This was not available earlier as Bajaj Finance has been a back-room player in consumer finance with customer interaction largely with the retailer.
MobiKwik is building an app platform which will seamlessly deliver credit from Bajaj Finance to pre-approved e-wallet holders for purchases that can be repaid in equated monthly installments (EMIs).
Besides housing Bajaj Finance’s EMI card, the app developed by MobiKwik will also have all of the functionality of MobiKwik’s current apps functionality, including access to its merchant network.
“In the first phase we have added an EMI card. This is the first app which combines a debit instrument with a closed loop credit instrument — the EMI card,” said Bipin Preet Singh, founder, and CEO, MobiKwik, to ET.
Founded in 2009 by Bipin Preet Singh and Upasana Taku MobiKwik, which has a user base of 55 million, will through this partnership immediately get access to about 100 million customers of Bajaj Finance.
The mobile wallet company had till now raised $80 million from investors including Sequoia Capital, American Express, Tree Line Asia, Cisco Investment, and Mediatek. In 2013, it received a licence from RBI to launch its digital wallet.
Pune-headquartered, Bajaj Finserv, a part of Bajaj Holdings & Investments Limited, is an Indian financial services company focused on lending, asset management, wealth management and insurance.
Through its joint ventures and subsidiaries, the company employs over 20,000 employees and has established a nationwide presence across over 1400 locations.
Bajaj Finserv: Website