MobiKwik is an India-based mobile payments startup. It has now reached a milestone few of its local rivals cannot even contemplate. It announces that MobiKwik reaches huge profit milestone.
The startup headquarters in Gurgaon India. It has done a few changes that non-of its rivals have even tried before.
MobiKwik Changes
The startup’s co-founder and CEO, Bipin Singh, states that the startup has witnessed a lot of high-growth and several regulatory changes in the payments domain. He later mentions that the startup no longer sees payments as a profitable business.
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Therefore, it has cut down on cashback, in the last two and a half years. Giving cashback is a popular offer given by many companies offering mobile payment in India. The startup, focused on building financial services on top of its mobile wallet app, instead.
The mobile wallet and payments processing businesses that account for about 75% of its revenue. Other than that it also grows financial services. The services include providing credits and insurance to customers. As a result, that has brought 25% of its total revenue.
The services target the majority of Indian with limited income who are underserved. They cannot get loan and access to credit cards.
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MobiKwik works with banks and other lenders to finance loans. The loans range between Rs 5,000 ($69) to Rs 100,000 ($1380). In the 18 months since it started offering this, MobiKwik has provided 800,000 loans and disbursed $100 million.
With those different services, MobiKwik has raised about $118 million to date.
Consequently, MobiKwik now has 110 million users and employs 400 people. That number is higher than the users of MobiKwik’s rivals. It has won the competition with Paytm, India’s heavily-backed firm, Google payment service, and Upasana Taku, another firm offering payment mobile payment.
