India-based digital wallet service MobiKwik has attracted $40m in strategic investment from mobile payment provider Net1, TechCrunch reported on Friday.
MobiKwik operates an online payment platform that is used by some 100,000 merchants. Users load money to their account through cash, loyalty points, online banking, debit or credit cards and then use the service to make payments both online and in physical outlets.
MobiKwik will integrate Net1’s mobile wallet card (MVC) into its app as part of the deal. MVC generates a one-time use credit or debit card number to pay for goods, without the need for an internet connection following the initial setup.
South Africa-headquartered Net1 hopes the partnership will help it grow in India. MobiKwik, which claims to serve 32 million customers, has raised about $120m to date.
The company received approximately $50m in an April 2016 series C round co-led by GMO Global Payment Fund, the fintech investment unit of internet company GMO, and fabless semiconductor producer MediaTek.
Sequoia Capital and Tree Line Asia also contributed to the series C round, having previously taken part in a $25m series B round in April 2015 alongside payment services firm American Express and Cisco Investments, a subsidiary of networking technology manufacturer Cisco.
Serge Belamant, chairman and chief executive of Net1, said: “Our strategic investment in MobiKwik provides us with meaningful participation in one of the largest and fastest growing digital payment markets globally.
“Over the next three years, MobiKwik has targeted having 150 million users and 500,000 merchants, and the introduction of our various technologies is expected to enhance their value proposition and differentiation to users, online and offline merchants, increase acceptance and accelerate growth.”