MobiKwik in talks to raise $60 Mn, to launch financial services soon

Digital wallet MobiKwik is in talks with a clutch of foreign as well as domestic investors to raise over $60 million by the end of current fiscal. The company is also planning to partner banks and NBFCs to provide financial services such as personal loans, insurance and zero interest loans to its users.

Through aforementioned financial services, MobiKwik expects to break-even in the next 18-24 months. Currently, MobiKwik claims to have about 65 million users while 2 lakh merchants accept payment via company’s wallet.

“We are in talks with some of the investors. We may raise it before the end of the current fiscal. We are speaking to a clutch of investors- American, Asians as well as Indian investors,” said Upasna Taku, Co-founder of MobiKwik to PTI.

So far, the Gurugram-based company had raised over $130 million fundings from likes of Sequoia Capital, Net1, American Express Bajaj Finance amongst others.

Bajaj Finserv had invested $33 million in MobiKwik for an 11% stake in August this year.

Recently, IDFC Bank entered into a strategic alliance with MobiKwik to launch a co-branded virtual Visa prepaid card for digital wallet’s customers. In July, MobiKwik wallet integrated with Samsung Pay Mini to enable one-tap payments at more than 1.4 million MobiKwik-powered merchants.

MobiKwik rival Paytm has already been preparing to launch a host of financial services by partnering banks and financial corporations. The Softbank-backed company had launched its payments bank, however, it can’t lend and roll out financial products on its own given regulatory guidelines.

MobiKwik will offer financial services such as KYC, loan disbursal process and collection through the app for banks and NBFCs.

“By adding these financial services what we are doing is we want to earn more per customer. So we are looking at a part profitability that in the next 18 to 24 months we should get profits,” added Taku.