Digital payments startup Mobikwik has raised Rs 225 crore from non-banking financial services major Bajaj Finance.
Bajaj Finance will hold approximately 10.83% of equity in MobiKwik on a fully diluted basis, approximately valuing it over Rs 2,000 crore.
Through this association, Bajaj Finance will extend credit facilities through MobiKwik’s mobile app catering to the wide customer base of both the companies.
As per a statement put out by Mobikwik, this strategic tie-up, will extensively use “mobile first” technology to offer credit facility to consumers and millennials. The partnership will empower consumer to avail credit facility through the wallet enabling them with instant purchases and payment option.
“The Industry estimates that Mobile wallet service will contribute up to 30 per cent share in mobile payment volume transactions in FY 2017,” it claims.
Commenting on the partnership, Rajeev Jain, Managing Director, Bajaj Finance Limited said, “We aim to combine the synergies of both the organizations – deep rooted customer analytics and extreme focus on digital-oriented eco-system will make this a disruptive proposition amongst our existing products. Bringing in debit and credit option in one app will facilitate stronger customer convenience, stimulating higher spends.”
Bipin Preet Singh, CEO, Mobikwik, says that the partnership with BFL will attract millions of new customers to choose wallet led mobile banking transactions.
“In short MobiKwik transforms itself as a new-age bank where our digital transactions will lead to lowering of lending rates and increased supply of money in the Indian economy,” he adds.
Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik is an online platform for recharging and paying bills. In 2013, it received a licence from RBI to launch its digital wallet.
It has so far raised $80 million from investors including Sequoia Capital, American Express, Tree Line Asia, Cisco Investment, and Mediatek.
Most recently, this Gurgaon-based digital payments company also integrated its wallet into Samsung Pay Mini, Samsung’s payment platform for its budget and mid-range phones.
Through this tie up, Mobikwik’s merchants can enable one-tap payments at their stores.