Consumer lending firm Bajaj Finance paid Rs 2.25bn ($35.3m) for a 10.8% stake in India-based mobile payment platform Mobikwik yesterday, according to a regulatory filing.
Founded in 2009, Mobikwik’s core product is a mobile-based phone recharging and bill payment platform, but it received approval to launch a digital wallet in 2013 and, in 2016, began issuing loans to its 55 million-strong customer base.
The company intends to expand its loans service and begin issuing car and medical insurance in partnership with both banks and non-banking financial services providers such as Bijaj, which will now begin issuing credit through the Mobikwik app.
Rajeev Jain, managing director of Bajaj Finance, said: “We aim to combine the synergies of both the organisations – deep-rooted customer analytics and extreme focus on (a) digital-oriented ecosystem will make this a disruptive proposition amongst our existing products.
“Bringing in debit and credit options in one app will facilitate stronger customer convenience, stimulating higher spends.”
The figures for the investment are intriguing in that they indicate Mobikwik’s valuation is approximately $327m, a far cry from the $1bn valuation cited by co-founder Upasana Taku in June this year when he told TechCrunch the company is looking to raise between $100m and $150m in its next round.
Mobikwik has now raised approximately $155m in funding altogether, mobile payment provider Net1 having invested $40m in the company in August 2016 as part of a strategic partnership agreement.
Payment services provider American Express and Cisco Investments, the corporate venturing arm of networking equipment maker Cisco, took part in the company’s $25m series B round in 2015, together with Sequoia Capital and Tree Line Asia.
The latter two returned for a $50m series C round in April 2016 that was co-led by internet company GMO’s financial technology fund, GMO Global Payment Fund, and fabless semiconductor manufacturer MediaTek.