Mobile wallet and recharge platform Mobikwik has tied-up with some of the leading online travel agents like MakeMyTrip, Cleartrip, Yatra and Goibibo to allow users to make payments using the Mobikwik wallet. Users will be able pay for their flight, train and bus tickets, cab bookings and hotel rooms with money stored in their Mobikwik wallet.
The company currently claims to have 17 million wallet users, though it’s not clear how many of them are active users. However, the company told MediaNama that 90% of the transactions processed by Mobikwik were on the mobile and 10% on desktop. In December, 2014, Mobikwik had 10 million wallet users, of which 7 million were on mobile. At the time, the company had claimed that 80% of the active users were on the mobile app and 20% active users were on desktop & SMS and that it processed 300,000 transactions every day.
Shift to mobile: Given that the online travel segment has been witnessing a gradual shift to mobile, this is a great move. Cleartrip’s search traffic from mobile devices increased from 30% in July 2014 to 40% in September 2014 to 43% in November 2014. MakeMyTrip had also mentioned in its June 2014 investor presentation that 29% of its traffic came from mobile (pdf) in the April-June period last year. Earlier last year, iXiGo CEO Aloke Bajpai had also told MediaNama that for most online travel companies more than 25% of their traffic and nearly 10% of their transaction volume is now coming from mobile devices.
Online travel still dominates e-commerce: The other reason this move makes sense for Mobikwik is that online travel still dominates the e-commerce segment in India in terms of volume of transactions. As of March this year, 50% of MobiKwik’s overall revenues comes from mobile recharge, 22.5% from online shopping, 12.5% from ticket booking, 10% from DTH recharge and 10% from utility bill payments. So, a slice of the online travel segment wouldn’t be bad for business. On the other hand, Paytm currently only offers bus ticket bookings on its platform.
Mobikwik, which first started integrating its mobile wallet with e-commerce platforms in June last year, currently has tie-ups with over 5000 e-commerce platforms including eBay, Jabong, ShopClues, HomeShop18, Naaptol, Pepperfry, Fashionara, FashionAndYou and BookMyShow among others. It also has The company had claimed that in October 2014 its mobile wallet users performed transactions worth Rs 65 crore, of which online shopping accounted for Rs 12 crore or 18.5% of the transactions.
Mobikwik funding: Last month, Mobikwik raised $25 million funding from Tree Line Asia and existing investor Sequoia Capital, with participation from Cisco Investments and American Express. At the time, the company had said the funds will go towards investing in technology data analytics, brand building and growing its user and merchant base. As part of the deal, Mobikwik also got access to Cisco’s networking technology as well as American Express’ payments processing expertise.