MobiKwik is an Indiancompany founded in 2009 that provides a mobile phone based payment system and digital wallet. Customers add money to an online wallet that can be used for payments. In 2013 the Reserve Bank of India authorized the company's use of the MobiKwik wallet, and in May 2016 the company began providing small loans to consumers as part of its service. The company launched its MobiKwik Lite mobile app in November 2016, designed for users of older 2G mobile networks and for those in areas with poor internet connectivity. In November 2016, the company reported having 1.5 million merchants using its service and a user base of 55 million customers.
History
MobiKwik was founded in 2009 by husband and wife team Bipin Preet Singh and Upasana Taku. Singh, a 2002 graduate of IIT Delhi, saw an opportunity to improve mobile recharge options. He seeded the company with USD$250 thousand of his own money, developed the website and payment options, and rented office space in Dwarka, Delhi. The initial service was a website with a closed wallet facility, but over the years, MobiKwik extended their service to mobile apps. The company initially partnered with online merchants to make their wallet available as a payment option on e-commerce sites. The company employs over 325 people, operating in three segments including consumer payments, fintech, and payment gateway.
Overview
MobiKwik launched an e-wallet system in 2012 that enabled users to deposit money online to use for bill payments and other features. MobiKwik provides financial services including loan, accident insurance, life insurance, fire insurance, IMPS money transfer, credit card bill payment, mutual funds, and DTH recharge. They also introduced the feature of sending and receiving money via a mobile app. In September 2014, Express Computer reported how MobiKwik was partnering with GoDaddy and other international companies to help them comply with Indian payment regulations. In June 2017, 80 percent of India's mobile wallet transactions market was performed by Paytm, and Mobikwik. In March 2017, MobiKwik's largest competitor was Paytm. In April 2015, MobiKwik was used by 15 million users and claimed to be adding one million new customers every month, according to Forbes India Magazine. In a partnership with CashCare, MobiKwik began providing small loans between 500–2,500 Indian rupees to customers in May 2016. In November 2016, MobiKwik had over 1.5 million merchants using its service and 55 million users. Following the 2016 Indian banknote demonetisation in November 2016, MobiKwik realized a 400% increase in financial transactions using the service by late December 2016. In February 2017, the company announced plans to invest approximately USD$45 million to expand its user base from 50 million to 150 million users in 2017. In 2019, MobiKwik announced a new partnership with DT One to expand their service internationally. Also in 2019, the company began offering loans, insurance and investment advice.
MobiKwik wallet
MobiKwik wallet is a semi closed wallet authorized in 2013 by the Reserve Bank of India. The RBI license allows the company to create marketplaces where customers can purchase goods and services from third party vendors, avoiding the reportedly high failure rates of payment gateway transactions in India.
Partnership
MobiKwik payment gateway partnered with Uber in July 2015, which enabled Uber and its drivers to utilize MobiKwik to process debit and credit card payments. In February 2020, MobiKwik partnered with Google for its mobile recharge search feature launched for Indian users and allows them to do recharge with Google search. The company had also built biller stack for e-commerce companies to integrate bill payments category into their mobile apps.
Mobile app
In November 2016, MobiKwik launched its MobiKwik Lite mobile app aimed at users in poor internet connectivity regions and consumers using older 2G cellular networks. On 8 November 2017, IDFC Bank entered into a strategic partnership with digital payments solution company MobiKwik to launch a co-branded virtual Visa prepaid card for customers of Mobikwik. On 28th May 2020, Mobikwik was removed from Google Play Store because it had a link to Aarogya Setu.
Funding
In 2013, after founder Singh's initial $250k seed investment, MobiKwik raised $5 million in Series A funding from an unnamed US-based VC firm. In 2015, Series B rounds from Singaporean investment firm Tree Line Asia and American firm Sequoia Capital, with participation from US technology company Cisco Systems and financial services companyAmerican Express raised an additional USD$31 million. In May 2016, the company announced a $50 million Series C round, led by Japanese Internet company GMO Internet, and Taiwanese semiconductor firm MediaTek, along with investors including Sequoia and Treeline Asia, bringing company funding to date to more than $80 million. On 19 June 2017, Medianama reported that Mobikwik had confirmed to them that they had raised $150 million at a valuation of $1 billion from undisclosed investors. On 3 August 2017, Bajaj Finance picked up 10.83% stake in MobiKwik for Rs. 225 crores.
Awards
In 2014, MobiKwik won the mBillionth Award South Asia in the category of Mobile Business, for socially valuable contributions to South Asia's digital infrastructure.
