MobiKwik raises funds for competitiveness in India’s digital payments market
Digital financial services platform MobiKwik is looking to stay in India’s digital payments race, which is currently dominated by Paytm, and is looking to raise funds from investors to scale up its business operations.
At a time when Paytm is rapidly scaling up its business with the support of investors like Softbank and Alibaba by investing billions of dollars, Mobikwik is in talks with investors to raise funds up to Rs 386 crore ($60 million) which will take the total funds raised this fiscal to around Rs 1288 crore ($200 million).
MobiKwik has earmarked an investment on Rs 100 crore (approx $15.5 million) for the next year to complete KYC (Know Your Customer) compliance for over 2 crore customers and also looking to increase its agent strength from the current 1000 to 7000 to reach out to customers.
The additional funds will help MobiKwik increase its customer base as it expects break-even in the next 18 to 24 months.
"We have raised USD 130 to USD 140 million so far. In August we raised USD 33 million from Bajaj (Finance). And we were looking at raising a complete round of USD 100 million (which includes USD 33 mn raised from Bajaj)," company's co-founder, Upasana Taku told news agency PTI.
"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," she said.
Mobikwik is one of the leading players in the digital payments space backed by investors like South Africa's payments major Net1, Sequoia Capital and American Express among others which hold a significant stake in the company.
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