Assistant Editor, IndianRetailer.com & Retailer Magazine Apr 24, 2017 / 2 MIN READ
Mobile –wallet company, MobiKwik looks to raise as much as Rs 1,000 crore to finance its expansion plans.
A MobiKwik spokesperson said, "MobiKwik is in advanced discussion to raise between $100 and 150 million from the domestic private- and public-sector banks, and some of the mutual funds by end of this month or early next month."
The company plans to buy web retailer Snapdeal’s payments-wallet business, Freecharge, in an equity-swap deal.
According to a spokesperson, "The proposed transaction will be more of a merger between Freecharge and MobiKwik. The shareholding of the merged entity will depend upon the valuation of these two companies."
Both companies are also exploring the possibility to raise funds from a Chinese investor after the merger. Chinese investors have indicated they may invest about $200 million in the merged entity for about a 20—25% stake.
The company has so far raised $70 million in the last three rounds of funding from Sequoia Capital, American Express, Tree Line Asia, MediaTek, GMO Payment Gateway, Cisco Investments, and Net1.
A senior executive at a digital payments platform said that the announcement made by RBI will allow larger size transactions and will not only help the users but merchants who can accept bigger payments.
MobiKwik recently launched MobiKwik Lite which allows small, unorganised retailers and shopkeepers to accept payments seamlessly.
Upasana Taku, Co-founder, MobiKwik, said, "We were shocked for the first few minutes as it took us some time to absorb the news."
Mobikwik has received an inprinciple approval from the RBI to set up a Bharat Bill Payments Operating Unit (BBPOU).
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