Mobile wallet service provider, MobiKwik is in advanced discussions with private equity (PE) firms as well as strategic investors to raise about $80 million-$100 million. These funds are likely to be utilised for the company?s expansion in the offline segment as well as for its payment banking services, for which it has applied to the Reserve Bank of India. The deal is likely to be closed over the next few months.
For expanding its offline business, the company is planning to activate about 100,000 point of sale (PoS) machines by February 2015. These PoS machines allow a customer to use the offline mobile wallet. The company is also developing a platform in which transactions between a customer app and a retailer app can take place with a one-time password.
In addition, Mobikwik also plans to dilute about 25 per cent stake as part of fundraising exercise at a valuation of $400 million (Rs 25 billion). These funds will be utilised as investments into technology and improved products. Previously, MobiKwik had raised about $5 million in Series-A funding from a US-based VC firm in 2013. The company presently has 12 million registered users and about 12 million transactions a month are undertaken using this service.
These funds are likely to be utilised for the company?s expansion in the offline segment as well as for its payment banking services, for which it has applied to the Reserve Bank of India. The deal is likely to be closed over the next few months.
