Mobile wallet startup MobiKwik to raise INR1,000 crore capital to fund its expansion plans

MobiKwik, one of the leading mobile wallet startups operating in the country, is in discussion with several investors and mutual fund manager for an estimated capital infusion of INR1,000 crore. The company is expected to use the capital for business expansion activities, and may leverage it for buying Freecharge. Though not officially confirmed, but MobiKwik is in back room discussions in a deal to acquire the Snapdeal-owned payments gateway. Apart from MobiKwik, PayTM and PayPal were also in fray to acquire the payments business, however, stepped back on valuation concerns.

An analyst aware of the development said that “The fund raising from Indian financial institutions will set the benchmark valuation for MobiKwik, and will be used for negotiating with Freecharge. Both companies are also exploring the possibility to raise funds from a leading mainland Chinese investor after the merger. Chinese investors have indicated they may invest about $200 million in the merged entity for about a 20—25% stake”.

The company, founded by Bipin Preet Singh and Upasana Taku in 2009, has raised $70 million in the last 3 funding rounds. It has ~250 employees, 1,200 contract workers, 10,000 field staff, and about $2 billion gross merchandise value.