Every startup dreams of becoming a Unicorn sooner or later and Delhi based Mobikwik is no exception to that rule. Working towards this dream, One Mobikwik Systems Pvt., an Indian digital payments service provider, is all set to raise funds from investors including BlackRock Inc. valuing the company at about $1 billion.
Mobikwik is in advanced talks to raise more than $100 million from BlackRock and Indian state-run lenders including Bank of Baroda and Canara Bank. However the information is not yet public.
If completed the transaction would make Mobikwik the second unicorn or startup worth more than $1 billion — from India’s fintech industry and indicate a revival of venture capital funding after valuation plunged in the past year. The first fintech unicorn was One97 Communications Ltd.
Founded by Bipin Preet Singh and Upasana Taku in 2009, Mobikwik has backers including Sequoia Capital, American Express Co. and Tree Line Asia Master Fund, according to the company’s website. The financial services company with more than 55 million customers will be looking at distributing financial products including mutual funds and insurance products through the platform
Mobikwik and One97’s PayTM unit grew rapidly in 2016 after Prime Minister Narendra Modi unexpectedly withdrew higher-value bank notes from circulation, eradicating some four-fifths of the nation’s paper money in a so-called demonetization, and asked Indians to use digital payment methods.