MobiKwik raises $40 million in Series C funding round from South Africa’s Net1

MobiKwik allows users to load money into a digital wallet using cash, loyalty points, debit card, credit card and net banking, after which it can be utilized to make purchases online.

Gurgaon - August 29, 2016. RedNewswire/-

Net1, a South African payment systems company, has invested $40 million in mobile wallet MobiKiwk. With this deal, MobiKwik will be integrating Net1’s virtual card technology across all its wallets and extend its wallet services to all merchants.

MobiKwik is a digital wallet service with a turnover of close to Rs 200 crore as of Dec 2013. Allows users to store up to Rs 50,000 in wallet and recharge mobiles, pay bills and shop across merchants in India across various channels – Apps, Website, Mobile website, SMS or IVR.

Tied Up with offline stores like Cafe Coffee Day (CCD) to enable its customers make payments through the MobiKwik wallet. It has partnered with more than 50,000 businesses across e-commerce, such as BookMyShow, Domino’s Pizza, eBay etc. Raised Series B from Treeline Asia, Sequoia Capital, Cisco Investments and American Express, had raised series A in 2013 from an unnamed US-based VC firm. Received $7M, part of Series B round, from Sequoia Capital and Tree Line Asia.

Both, Sequoia and Tree Line have been issued a total of 89,844 cumulative compulsorily convertible preference shares at 3,605.57 per share in lieu of their investment. Opens up access to its patent-pending Power Wallet interface to all retailers such as OYO Rooms, PVR Cinemas, Zomato, Meru Cabs and others as of Jan 2016.  Raised about $6.5 Mn in a mix of debt and equity funding from existing investors Sequoia Capital and Tree Line Asia.

As of March 2016, enters into partnership with Razorpay which will enable online retail customers of Razorpay to have MobiKwik payment wallet. Raised $50M as a strategic series C investment led by GMO Payment Gateway and Mediatek. In July 2016, the company completed 1 million cash pick-up transactions.

The company entered  bus booking segment and announced partial payment for ticket reservation and cash pick up for bus tickets booking in Aug 2016. Partnered with NGO Samagra, to provide ICT-enabled mobile wallets to the urban slum dwellers the NGO works with.

MobiKwik’s current shareholders include Sequoia Capital, Tree Line Asia, American Express, Cisco Investments, GMO Payment Gateway and MediaTek, as well as Bipin Preet Singh and Upasana Taku, the founders and executive officers.

Net1’s CEO and chairman Serge Belamant said that the investment will help the company scale in India. “We can leverage India’s substantial efforts to drive financial inclusion, down to the grassroots in rural and deep rural areas. Many of our solutions are tailor-made to provide multiple financial and other services, increase accessibility, eliminate fraud and reduce cash,” he added.

“With Net1’s expertise and track record in facilitating financial inclusion across Africa, our strategic relationship with MobiKwik marks an important milestone from which we can leverage India’s substantial efforts to drive financial inclusion, down to the grassroots in rural and deep rural areas. Many of our solutions are tailor-made to provide multiple financial and other services, increase accessibility, eliminate fraud and reduce cash,” he added.

Net1 is a provider of payment solutions and transaction processing services across emerging economies. It has a primary listing on the Nasdaq and a secondary listing on the Johannesburg Stock Exchange.

Source: PTI

Featured image source

Contributors: