India-based mobile wallet company MobiKwik has entered the short-term consumer loan segment, claiming to be the first wallet company in India to roll out this service, according to the release. Users may also register themselves for EMIs. The approval for each loan request will be done within thirty minutes and initially a loan up to INR 50K will be available for the users.
“Only 1% of Indians have access to credit. This presents a great opportunity for us and we wish to pioneer the space by being able to provide personal loans to the rest of the population,” MobiKwik Co-Founder Upasana Taku commented. “We are excited to venture into the consumer loan segment as it aligns with our end goal of providing fintech services to all.”
Founded in 2009 by Bipin Preet Singh and Taku, MobiKwik enables users to pay instantly for mobile recharge and bill payments. The platforms claims to connect 35 million users with 1 Lakh retailers and has partnered with over 50,000 businesses including Café Coffee Day, PVR, Domino’s Pizza, Pizza Hut, TastyKhana, JustEat, eBay, Jabong, Snapdeal, ShopClues and HomeShop.
Earlier in March 2016, MobiKwik, ventured into the hyperlocal space with the launch of its new feature Explore Nearby. The feature is available on the MobiKwik app and enables discovery of neighbourhood stores, restaurants, cafes, etc. that accept wallet payments. Following that, in August 2016, it announced partial payment for ticket reservations in the bus-booking segment. MobiKwik also partnered with Indian Railway Catering and Tourism Corporation (IRCTC) and, as a part of the exclusive partnership, MobiKwik will power e-cash payments on IRCTC’s e-catering app, Food on Track.
The Indian platform has had successive raises this year. In December 2015, MobiKwik raised $6.5 M (INR 44 Cr.), in a mix of debt and equity funding from existing investors Sequoia Capital and Tree Line Asia. In May 2016, the fintecher raised an undisclosed amount of funding led by Japan’s GMO Payment Gateway and MediaTek. In August 2016, South Africa-based Net1 UEPS Technologies Inc. invested $40 M for a subscription agreement with MobiKwik in order to mark its foray in India.