Mobile wallet company MobiKwik is looking at raising over $100 million (roughly Rs. 637 crores) from investors this year to fuel its expansion.
MobiKwik recently inked an agreement with Bajaj Finance under which the latter invested Rs. 225 crores (about $35 million) in the digital payments company for a 10.83 percent stake.
“We had said that we plan to raise about $150 million and this investment (from Bajaj Finance) is the first tranche. We are in talks with private equity and venture capitalists to raise over $100 million,” MobiKwik Co-Founder Upasana Taku told PTI.
She added that more funding is expected to come in during the latter half of the year.
The deal with Bajaj Finance values the company at over $300 million (roughly Rs. 1,911 crores).
MobiKwik has so far raised over $85 million in funding from investors like South Africa’s payments major Net1, Sequoia Capital, American Express, Tree Line Asia and Cisco Investments.
It claims to have a network of more than 15 lakh direct merchants and over 55 million users.
Talking about the Bajaj Finance partnership, Taku said the two companies will collaborate to launch many “sector-first and industry-first services” on its app.
Under the agreement, Bajaj Finance will acquire 10 equity shares and 271,050 compulsory convertible preference shares (CCPS) of MobiKwik.
Post conversion of the CCPS, Bajaj Finance would hold about 10.83 percent of equity in MobiKwik. The conclusion of the transaction is subject to fulfilment of certain conditions in due course.
Digital payments have gained significant traction after the government’s decision to ban high-denomination notes in November last year.
Mobile wallet companies like Paytm and MobiKwik have witnessed significant growth in number of users as well as volume of transactions on their platforms.
These companies are also rolling out new features and offers to drive usage and bring new consumers on board.