Mobikwik, an online payments platform, has appointed New York-based investment bank Goldman Sachs’s India unit for its fundraise, people aware of the matter said. Mobikwik looks to transition itself into a financial services company from being just a mobile wallet.
Mobikwik’s co-founder Upasana Taku confirmed the development saying it is looking for a “long-term” strategic investor for its next round of financing. This comes at a time when the company claims to have recorded better financial performance in the last 10 months.
Mobikwik, which started as a mobile wallet in 2009, has been adding new businesses like lending & micro-insurance over the last one year. New businesses like insurance and lending contribute about 25% of the company’s revenue, Taku said. The rest 75% of its revenue comes from the consumer payments business. “We have disbursed loans of Rs 868 crore. We are at a revenue run-rate of Rs 436 crore (in August), which was Rs 218 crore about six months ago,” she added
Taku, who runs the company with her husband and co-founder Bipin Preet Singh, stressed on metrics like the positive contribution margin, which is calculated after deducting its direct costs and marketing costs from direct revenue. Mobikwik is looking to raise anywhere between $50 an $100 million in this round. There is no clarity by when the company would be able to close this financing.
Over the last one year, the company has also reduced its operating costs and monthly burn to get consumers while competing against deep-pocketed Paytm, which counts SoftBank and Alibaba among its investors. Mobikwik has raised about $120 million from investors like Japan’s payment gateway GMO, South Africa’s Net 1, Sequoia Capital. Based on the current growth trajectory, Taku said the company should be able to clock annual revenue run-rate of over Rs 700 crore by March 2020.―Times of India