In an investment round led by Hindustan Media Ventures, the online recharge and bill payments platform, MobiKwik, acquired Rs 52 crore (appr. $7 million) in the capital. Hindustan Media Ventures is the investment division of the HT group. The fintech company plans to use the fund raised on expanding its business operations in all key market segments which include digital credit and payment cards, consumer-related payments, and the firm’s payment gateway. Infosys Co-Founder Kris Gopalakrishnan’s family office, Pratithi also contributed to the investment round.
Bipin Preet Singh, Co-Founder, and CEO of MobiKwik said that the HT Group and Kris investing in the company was an endorsement for its business model which is bringing credit to 100 million Indians. The company is on the road to IPO, and it is looking forward to the guidance of its investors on building a long-lasting sustainable company while creating an impact on society through financial inclusion. The online credit card business of the company had seen considerable traction, and it also pre-approved 15 million customers for its credit product. Consumers would be able to avail this by making digital payments through the MobiKwik wallet and the MobiKwik Blue Amex Card.
Over the years the company had expanded its credit and online payments services. Along with it, the company also managed to double its revenue for three consecutive years. MobiKwik claims that it lowered its cash burn rate to almost zero. As of March 2020, the company earned Rs 379 crore (appr. $5.14 million)in revenues.
Piyush Gupta, Group CFO and CEO Strategic Investments of the HT Group noted that the company has created a unique spot for itself in the fintech space with its ‘digital credit card model’. Also, it has shown good financial performance by scaling revenue and becoming breakeven profitable. Gopalakrishnan said that the MobiKwik team is executing the vision of creating and running a successful and sustainable business, which creates jobs and can run for a long time.
The company had partnered with Amex last month and launched MobiKwik Blue American Express Card targeting its young user base. The card brings in a contactless digital-only experience to its users.
