Mo­biKwik Of­floads 10.83% Stake to Ba­jaj Fi­nance, Raises .₹ 225 crore 2,077CR

Ba­jaj Fin to offer credit fa­cil­i­ties through Mo­biKwik’s app to cus­tomers of both cos

The Economic Times - - Companies: Pursuit Of Profit -

Mugdha Vari­yar & Arun Kumar

Ben­galuru | New Delhi: Dig­i­tal pay­ment com­pany Mo­biKwik has raised .₹ 225 crore from Ba­jaj Fi­nance of­fload­ing 10.83% stake, valu­ing it at .₹ 2,077 crore.

Ba­jaj Fi­nance, in a BSE fil­ing on Wed­nes­day, said it has “en­tered into a sub­scrip­tion agree­ment with Mo­biKwik Sys­tems Pri­vate Lim­ited (‘Mo­biKwik’) for ac­qui­si­tion of 10 eq­uity shares and 2,71,050 com­pul­sory con­vert­ible pref­er­ence shares (CCPS).”

Mo­biKwik is also in dis­cus­sion with a dif­fer­ent set of in­vestors to raise about .₹ 75 crore, a per­son fa­mil­iar with de­vel­op­ment said.

Mo­biKwik has also en­tered into a strate­gic al­liance with Ba­jaj Fi­nance to launch In­dia’s first debit and credit wal­let. Un­der the agree­ment, Ba­jaj Fi­nance will ex­tend credit fa­cil­i­ties through Mo­biKwik’s mo­bile app cater­ing to a wide cus­tomer base of both the com­pa­nies. The part­ner­ship will em­power con­sumers to avail credit fa­cil­ity through the wal­let, en­abling them with in­stant pur­chase and pay­ment op­tions. Mo­biKwik did not offer a com­ment till the time of go­ing to print.

Mo­biKwik had raised $80 mil­lion from in­vestors, in­clud­ing Se­quoia Cap­i­tal, Amer­i­can Ex­press, Tree Line Asia, Cisco In­vest­ment, and Mo­biKwik was founded in 2009 by Singh and Upasana Taku as an on­line plat­form for recharg­ing and pay­ing bills for mo­bile phones and satel­lite TV con­nec­tions. In 2013, it re­ceived a li­cence from RBI to launch its dig­i­tal wal­let. Mo­biKwik now wants to lend money and pro­vide in­sur­ance as well to its mil­lions of users, in­clud­ing mer­chants, as it seeks to “be­come a one-stop shop for all fi­nan­cial so­lu­tions,” ac­cord­ing to co-founder Taku. It is look­ing to begin with the auto in­sur­ance and cash­less medi­claim seg­ments by part­ner­ing with banks and non­bank­ing fi­nan­cial in­sti­tu­tions.

The com­pany re­cently built a cus­tomised, co-branded wal­let for Bharat San­char Nigam (BSNL), which will also give it ac­cess to mil­lions of cus­tomers of the sta­te­owned tele­com com­pany.

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