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
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.