MobiKwik, the Gurgaon based mobile wallet company has raised between $50mn and $70mn from GMO Payment Gateway, a Japanese payments company and MediaTek, a Taiwan based semi-conductor company, according to sources. The existing investors such as Sequoia Capital and Treeline Asia have also participated in this Series C funding round.
MobiKwik, stands at the number two slot among the mobile wallet companies in the country, first being PayTM. MobiKwik has around 25 million users and more than half a million transactions happening every day through its platform. The venture however, failed to receive the payments bank licence from the Reserve Bank of India. With investors stressing on unit economics, sustainable growth and a sound business model even large Indian startups are finding it very hard to raise funds. It is important to mention here that this development comes at a time when mobile wallet companies are struggling to remain relevant with banks pushing aggressively into the retail digital payments space.
As wallet companies are finding it hard to find a steady revenue stream and are trying hard to get into trying alternate forms of revenue generation.
MobiKwik is already in the process of diversifying its business and presently offers micro credit facilities to its users. It also enables customers who do not have access to online banking facilities, to recharge their wallets through their pick-up agents.
Last year the company had raised around 44 Crore from Tree Line Asia and Sequoia Capital. MobiKwik also had plans to raise between $50mn to $100mn and take the valuation of the company to $400mn. Knowstartup had reported this in October last year, at that point of time, MobiKwik had raised close to $30 million (about Rs 195 crore) in funding. This amount came from various investors like Sequoia Capital, American Express, Tree Line Asia and Cisco Investments.