MobiKwik scoops up $29.5 mn in a fresh funding round

Gurugram headquartered One MobiKwik Systems, which owns an eponymous digital payments platform, has raised $29.5 million (Rs 224 crore at current exchange rates) in a combination of debt and equity issue from a Cayman Islands-based special purpose vehicle, MK SPV IX LP.

The identity of the parent company owning the SPV could not be ascertained. MobiKwik did not comment on the development.

MobiKwik has raised $4.8 million in a growth round, $14.6 million in a compulsorily convertible debenture issue, $10 million in a warrants issue and Rs 94,400 ($1,242) in an equity share issue, latest regulatory filings filed by the company showed.

The round values MobiKwik at an estimated $414 million, 31% higher than the fair market valuation it secured in the preceding round. 

Earlier this month, an independent valuation report filed by the company with the Ministry of Corporate Affairs showed that MobiKwik was valued at $313.8 million as on December 31, 2019.  

At the time, the company raised $1.5 million in a growth round from new investors Nicholas Jarroson, associate director at Abu Dhabi-based infrastructure advisory firm Tribe Infrastructure Group, and brokerage firm Atma Securities.

In December, financial services firm Bajaj Finance invested $3 million in the company. As on March 31, 2019, Bajaj Finance’s total investment in the digital payments platform stood at $31.7 million.

MobiKwik has raised $120.5 million since its launch, according to data available with VCCEdge. Venture capital firm Sequoia Capital India, Cisco Investments, media conglomerate Bennett, Coleman & Company, American Express Company and GMO Venture Partners are investors in the company.

In July last year, the company raised $1.27 million from New Delhi headquartered broadcast major NDTV and Trifecta Capital. 

Founded in 2009 by Upasana Taku and Bipin Preet Singh, Mobikwik provides financial services that include a digital wallet, lending, insurance, investments in mutual funds, gold and payment gateway.

The company aims to disburse 1.2 million loans worth Rs 1,500 crore in the current financial year as part of a big push for its credit business. 

In June, MobiKwik revealed it will double down on its payment gateway business over the next two years. The platform claims to have 94 million unique cards saved on its payment gateway, of which 20 million are credit cards. It is targeting transactions worth up to $20 billion over the next two years for its payment gateway vertical.

Fintech startups have lately attracted investor interest. This month, BharatPe raised $75 million in a Series C round led by a new investor Coatue Management, a technology sector focused hedge fund, and returning investor Ribbit Capital. Flipkart-owned PhonePe also raised $60 million in a fresh round of capital infusion from its Singapore headquartered parent company.