New Delhi, May 4: Mobile wallet company Mobikwik on Tuesday said it has raised USD 50 million (about Rs 330 crore) in funding, led by Japanese payments firm Gateway and Taiwanese chip maker MediaTek. Its existing investors such as Sequoia Capital and Treeline Asia also participated in the current round of funding.
The company said it will use the proceeds for product innovations, team building and user growth. "Despite the current business climate when funding has become challenging, unit economics, sustainable growth and a sound business model are what investors are focusing their attention on. We are very excited to live up to the investors' expectations and raise the funding where even larger players are failing to raise funds," Mobikwik founder and CEO Bipin Preet Singh said in a statement.
MobiKwik's growth has been promising as the company's GMV has grown drastically by 250 per cent, he added. With about 30 million users in the country, Mobikwik is one of the biggest wallet companies in India. It competes with the likes of Paytm and PayU.
"MobiKwik is a dominating player in the Indian mobile payments space and continues its consistent growth trajectory while staying true to its DNA of rapid product innovation and capital efficiency. Our valuation too has increased significantly," Singh said but did not disclose the details. Lack of profits has raised concerns over valuations of startups globally, leading to many of these businesses facing difficulty in raising fresh funds.
In the recent past, mutual fund T Rowe Price cut back its valuations in many of its tech startup investments, including India's Flipkart. Morgan Stanley, too, made a similar move earlier this year. MobiKwik has previously raised close to USD 30 million (about Rs 195 crore) in funding from Sequoia Capital, American Express, Tree Line Asia and Cisco Investments.
MobiKwik has partnered 75,000 retailers, including the likes of Big Bazaar, WHSmith India, Cafe Coffee Day and Store King in the offline space. In online space, it has partnered firms like OYO Rooms, BookMyShow, Grofers, Big Basket, eBay, ShopClues, Myntra, Jabong, Pepperfry and MakeMyTrip, among others.