Mobikwik raises Rs 330 crore from Gateway, MediaTek
Mobile wallet company Mobikwik on Tuesday said it has raised $50 million (about Rs 330 crore) in funding, led by Japanese payments firm Gateway and Taiwanese chip maker MediaTek.
Its existing investors such as Sequoia Capital and Treeline Asia also participated in the current round of funding. The company said it will use the proceeds for product innovations, team building and user growth.
"Despite the current business climate when funding has become challenging, unit economics, sustainable growth and a sound business model are what investors are focusing their attention on. We are very excited to live up to the investors' expectations and raise the funding where even larger players are failing to raise funds," Mobikwik founder and CEO Bipin Preet Singh said in a statement.
MobiKwik's growth has been promising as the company's GMV has grown drastically by 250%, he added.
With about 30 million users in the country, Mobikwik is one of the biggest wallet companies in India. It competes with the likes of Paytm and PayU.
"MobiKwik is a dominating player in the Indian mobile payments space and continues its consistent growth trajectory while staying true to its DNA of rapid product innovation and capital efficiency. Our valuation too has increased significantly," Singh said but did not disclose the details.
Lack of profits has raised concerns over valuations of startups globally, leading to many of these businesses facing difficulty in raising fresh funds.
In the recent past, mutual fund T Rowe Price cut back its valuations in many of its tech startup investments, including India's Flipkart. Morgan Stanley, too, made a similar move earlier this year.
MobiKwik has previously raised close to $30 million (about Rs 195 crore) in funding from Sequoia Capital, American Express, Tree Line Asia and Cisco Investments.
MobiKwik has partnered 75,000 retailers, including the likes of Big Bazaar, WHSmith India, Cafe Coffee Day and Store King in the offline space. In online space, it has partnered firms like OYO Rooms, BookMyShow, Grofers, Big Basket, eBay, ShopClues, Myntra, Jabong, Pepperfry and MakeMyTrip, among others.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
Retirement Planning: SIP+SWP combination; Rs 15,000 monthly SIP for 25 years and then Rs 1,52,000 monthly income for 30 years
Top Gold ETF vs Top Large Cap Mutual Fund 10-year Return Calculator: Which has given higher return on Rs 11 lakh investment; see calculations
Retirement Calculator: 40 years of age, Rs 50,000 monthly expenses; what should be retirement corpus and monthly investment
SBI 444-day FD vs Union Bank of India 333-day FD: Know maturity amount on Rs 4 lakh and Rs 8 lakh investments for general and senior citizens
EPF vs SIP vs PPF Calculator: Rs 12,000 monthly investment for 30 years; which can create highest retirement corpus
Home loan EMI vs Mutual Fund SIP Calculator: Rs 70 lakh home loan EMI for 20 years or SIP equal to EMI for 10 years; which can be easier route to buy home; know maths
06:23 PM IST