From loans to mutual funds to insurance, MobiKwik aims to tap new markets.

17-July-2019 by Virtue Ventures

  • MobiKwik plans to raise $50 million from an investor before its IPO. The company counts Sequoia Capital, American Express and Cisco Investments among its marquee investors.
  • It handles over a million transactions per day, with loans granted to half a million of its 107 million users so far, and sales of nearly 3,000 insurance policies daily.
  • The company which plans an initial public offering in the next two years, sees its diverse offerings as key to growth in the still rising in industry.
  • Loans of as little as $30 and life insurance policies for as low as thirty cents a month that’s what an Indian digital-payment company put money will double its revenue and help it break even this year.
  • In 10 years of existence, One MobiKwik System Pvt. has expanded from online payments into financial products including insurance, gold and mutual funds.
  • The number of digitally paying users in India is still not more than 180 million or hardly about 10% of the population.
  • MobiKwik co-founder said that there’s still a huge opportunity to tap.
  • India’s overall retail credit demand is poised to grow 60% to 53 lakh crores over the next four years, according to data from the Digital Lenders Association of India.
  • The budget announced by Finance Minister Nirmala Sitharaman includes measures to boost the country’s cashless drive, taxing large cash withdrawals and forcing most companies to offer digital payments at no extra charge.
  • The company expects revenue to reach 480 crores in the 12 months ending next March, up from 180 crore billion rupees a year earlier, The consumer payments business is still likely to account for about 60% of the total, financial products are seen contributing as much as a fifth in the first full year A bill-payment platform makes up the rest.
  • MobiKwik expects to break even at the earnings before interest, taxes, depreciation, and amortization level this year, as it has lowered customer incentives amid strong demand.
  • MobiKwik offers personal loans of 2,000-100,000 at interest rates of 20-28% over three to 12 months. The company sells 100,000 life insurance policies for a monthly premium of 20.
  • The industry is powerful competitive with MobiKwik being one the prime players along with Alibaba-backed Paytm, Flipkart’s PhonePe and Amazon Pay. They can be achieved through diversification.
  • Even as firms providing digital transaction services aim to acquire more and more customers.
  • MobiKwik sees that their target is almost 40% of those Indians who make $1,000 to $5,000 annually and no financial products are reaching them because of difficulties in distributing them.