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Net1, a South African payment systems company, has invested $40 million in mobile wallet MobiKiwk. With this deal, MobiKwik will be integrating Net1’s virtual card technology across all its wallets and extend its wallet services to all merchants.

The company said that it will be using the funding to scale up in India and grow to a user base above 150 million and sign on 500,000 merchants. MobiKwik has a user base of 32 million and 100 retailers. It’s competitor Paytm has more than 125 million users and xxx merchants signed on its platform.

In May, the company raised $50 million in a series C round of funding led by Japan’s GMO Payment Gateway and Taiwan’s Mediatek.  In April last year, MobiKwik raised ~$25 million in Series B funding led by Tree Line Asia, existing investor Sequoia Capital along with Cisco Investments and American Express for investing in technology data analytics, brand building and growing its user and merchant base. Apart from this round of funding, MobiKwik has raised $86.85 million, as indicated by CrunchBase.

Net1’s CEO and chairman Serge Belamant that the investment will help the company scale in India. “We can leverage India’s substantial efforts to drive financial inclusion, down to the grassroots in rural and deep rural areas. Many of our solutions are tailor-made to provide multiple financial and other services, increase accessibility, eliminate fraud and reduce cash,” he added.

MobiKwik’s current shareholders include Sequoia Capital, Tree Line Asia, American Express, Cisco Investments, GMO Payment Gateway and MediaTek, as well as Bipin Preet Singh and Upasana Taku, the founders and executive officers.

Net1 is a NASDAQ and Johannesburg Stock Exchange listed company which processes payments in South Korea and South Africa and offers debit, credit and prepaid processing and issuing services for Visa, MasterCard and ChinaUnionPay in China and other territories across Asia-Pacific, Europe and Africa, and the United States.

MobiKwik Nearby: In March, the wallet launched an ‘Explore Nearby’ feature on its app, which lets users discover neighbourhood stores, restaurants, cafes etc., that accept payments from the company. At the time, the company mentioned that it had over 10,000 partner stores including merchants like Big Bazaar, Domino’s, Barista, Archies etc.

Offline transactions: In October, MobiKwik claimed to have processed 500,000 transactions from August- September 2015, amounting to over Rs 60 crore. Out of the 500,000, 100,000 transactions were processed across 260 Big Bazaar outlets in the country. The top 5 cities for offline payments were Mumbai, Bangalore, Kolkata, Hyderabad and Delhi.