Why has Mobikwik been raising start-up money from the market?

Mobikwik, which operates in the digital payment and the financial services space, raised Rs.52 crore in a fresh round of funding. The funding was led by Hindustan Media Ventures, the investment arm of HT group. It also saw participation from the family office of Kris Gopalakrishnan, one of the original co-founders of Infosys.

Mobikwik has stated that the fresh capital will be used for growing its key business franchises. This includes its digital credit business, consumer payments and the payment gateway subsidiary, Zaakpay. Mobikwik had last raised Rs.8.67 crore from venture debt firm Trifecta Capital.

Mobikwik has been bringing digital credit to over 100 million Indians with the entire process from evaluation to ratings to disbursement of credit being digital. Mobikwik is also on the road to IPO. MobiKwik plans to go public and list on stock exchanges by 2022 after becoming profitable by March 2021.

Mobikwik revenues grew by 133% to Rs.379 crore in the fiscal year 2019-20 and the company also reduced its EBITDA loss by 60% to Rs.45 crore. Currently, Mobikwik operates across consumer payments, financial services and payment gateway. All the three business lines are seeing frenetic growth for the company.