Homegrown fintech platform MobiKwik on Friday announced that it has raised INR 52 crore in a fresh round of funding that was led by Hindustan Media Ventures with the participation from Infosys co-founder Kris Gopalakrishnan’s family office Pratithi.
MobiKwik will use the fresh capital for growth in all key business segments of the firm, i.e. in digital credit and cards, consumer payments and payment gateway.
Founded in 2009 by Bipin Preet Singh and Upasana Taku, the company has raised $110 million in funding from marquee investors. The company boasts that its a truly Indian payment app as it has 60 per cent Indian ownership.
Currently the company has 120 million users with 3 million merchants and over 300 billers and since 2018 it has pre-approved over 15 million users for its digital credit cards. The credit is available to users for making payments via the MobiKwik Wallet and MobiKwik Blue Annex Card.
Commenting on the investment, Singh, co-founder and chief executive officer at MobiKwik, said, “The HT group and Kris coming on board is very exciting for us and is an endorsement in our business model of bringing Digital Credit to 100 Million Indians. We are on the road to IPO and look forward to their guidance on building a long lasting sustainable company and creating impact via financial inclusion.”
The ‘Desi’ fintech platform has doubled its revenue for three successive years and claims to have significantly reduced its cash burn to near zero. The company posted INR 379 crore in revenues as of the financial year ending March 2020, a growth of 133 per cent year-on-year. It has also forayed into the wealthtech space with the acquisition of Mumbai-based Clearfunds.
“MobiKwik has carved out a unique spot for itself with its digital credit card model within India’s fintech ecosystem. The company has demonstrated good financial performance by scaling revenue while becoming breakeven profitable. We are excited to partner with the company in its growth journey,” said Piyush Gupta, group chief financial officer and CEO-strategic investments of the HT group.
Gopalakrishnan, co-founder and former co-chairman of Infosys, expressed happiness to support and encourage MobiKwik.