Digital mobile wallet firm MobiKwik has launched a SaaS-based B2B product Magic to expand its horizons and aims to clock a revenue of Rs 100 crore in the next 18 months.
The Gurugram-based company is all set to invest $10 million to launch a slew of financial products starting from Magic, which is an end-to-end solution for corporate processes, rewards, and reimbursements, reports BusinessLine.
The latest development comes on the heels of company’s revenue declined to 1.8 per cent and losses jump to 20.1 per cent in the fiscal year 2017 as compared to the previous one.
Breaking all the speculation of fundraising, the home-grown firm founded by Bipin Preet Singh and Upasana Taku will infuse the aforementioned money from the existing fund.
In December 2017, Upasana had told PTI that the firm is looking to raise around $60 million. Now the company has removed the curtain and said it is not going to raise any fund for the next six months, instead will prefer to go with existing investors such as Bajaj Finance to meet the needs.
MobiKwik Magic will include employee benefits such as reimbursements for food, fuel, medical, phone, LTA and other company benefits – all accessible digitally for both corporations and employees.
MobiKwik currently providing this as a free service to 32 companies and would scale it up to 5,000 corporates, startups and SMEs in the next 18 months. Furthermore, the firm eyes Rs 8,400 crore worth of transactions on Magic, which will come as an integrated feature on the MobiKwik app.
MobiKwik estimates Magic to cut costs for companies to the tune of Rs 6 crore and is targetting to reach over 5 million users over the next 2 years.
Magic will be a turnaround in the employee benefit and reimbursement process by eliminating the constant challenges faced by both the employer and the employee. For instance, a medical bill takes about 15 days to be reimbursed. However, with Magic, it can be transferred to the wallet immediately.
MobiKwik claims to have about 100 million users base. It does $2 billion worth of transactions every year and aims to reach up to $10 billion figure by end of 2018.
For Magic, MobiKwik has on-boarded Star Health, Rallis India, Bajaj Allianz, Bajaj Finance and Grofers to widen its user base.
The company has so far raised over $130 million fundings from likes of Sequoia Capital, Net1, American Express Bajaj Finance amongst others. In 2013, it received a licence from RBI to launch its digital wallet.