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MobiKwik confirms it is raising around $150M in the coming months


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Digital payments company MobiKwik confirmed to MediaNama that is raising $150 million at a valuation of $1 billion. However, a spokesperson declined to give information about the investors in the company. This was first reported by TechCrunch. The publication added that the company plans to invest around $45 million the capital on growing user and merchant bases and expand its office base to 20 from the current six.

In August 2016, Net1, a South African payment systems company, invested $40 million in MobiKiwk. With this deal, the company integrated Net1’s virtual card technology across all its wallets and extend its wallet services to all merchants. The company’s total funding is $126.85 million.

Note that in February, MobiKwik said that it would invest Rs 300 crore for expansion this year, including to acquire over 100 million users in an effort to catch up with Paytm. Currently, it has around 55 million users and has 1.5 million direct merchants.

Lending

Meanwhile, the spokesperson said that the funds will be used for developing other financial products including loans. Note that MobiKwik had started offering loans and was tying up with a number of non-banking financial companies (NBFCs) for the same. The spokesperson added that the lending program was in pilot mode but declined to give further details on how many loans it gave out.

The lending business will have two options: An EMI model and a loan model. The EMI model can be used for purchases such as laptops and mobile phones on online websites which support MobiKwik while the loan model can be used for any purpose. Initially, MobiKwik is planning to give out loans worth Rs 50,000. The company will be giving out these loans using a credit score developed in-house. MobiKwik will consider the number of transactions a user has made on the platform OR how long a user has been on the platform, among other similar factors to assess the credit score.

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Supercash

MobiKwik also launched Supercash, a loyalty initiative for users which will also provide reward points for purchases made at mom and pop shops. It said that disbursed Rs. 50 crore worth of Supercash in the months of March and April 2017. The company observed a 28% growth in transactions per user along with a 32% improvement in customer retention during this period followed by an increase in the number of transactions per user grown by 17%.

BSNL wallet tie-up

Last month,  state-owned telco BSNL partnered with MobiKwik to launch ‘BSNL Wallet’ a semi-closed mobile wallet exclusively for BSNL users in India. The company did not provide a timeline for the app launch but added that “the wallet will be developed, operated and issued by MobiKwik and distributed and marketed by BSNL.” MobiKwik will also sell BSNL SIMs to its users via 8000 ‘Feet on Street’ professionals and 250,000 offline retailers across India.

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