Fintech company MobiKwik has acquired Rs 52 crore (appr. $7 million) in capital through an investment round led by Hindustan Media Ventures, the investment division of HT Group.
The round included contributions from Infosys Co-Founder Kris Gopalakrishnan’s family office, Pratithi.
The funds raised will be used to further expand MobiKwik’s business operations in all key market segments the company already serves, including digital credit and payment cards, consumer related payments, and the firm’s payment gateway.
Bipin Preet Singh, Co-Founder and CEO at MobiKwik, stated:
“The HT Group and Kris coming on board is very exciting for us and is an endorsement in our business model of bringing digital credit to 100 million Indians. We are on the road to IPO and look forward to their guidance on building a long lasting sustainable company and creating impact via financial inclusion.”
MobiKwik’s management revealed that they’ve seen considerable traction in their online credit card business and have also pre-approved 15 million customers for their credit product, which may be availed by consumers for conducting digital payments through the MobiKwik wallet and the MobiKwik Blue Amex Card.
Piyush Gupta, Group CFO and CEO Strategic Investments of the HT Group, remarked:
“MobiKwik has carved out a unique spot for itself with its ‘digital credit card model’ within India’s fintech ecosystem. The company has demonstrated good financial performance by scaling revenue while becoming breakeven profitable.”
In addition to expanding its credit and online payments services, MobiKwik has managed to double its revenue for three consecutive years and claims it has lowered its cash burn rate to almost zero.
The Fintech firm earned Rs 379 crore (appr. $5.14 million) in revenues as of the financial year (FY) ending in March 2020, which represents a solid growth of 133% on year-on-year basis.
“A successful new business is one which creates jobs, is sustainable, and can run for a long time. The MobiKwik team is executing with this vision and I am happy to support and encourage them.”