Mobikwik: How $250 thousand seed funded company become a fintech giant

Mobikwik: How $250 thousand seed funded company become a fintech giant

Utilizing a Mobile Wallet has now ended up being a propensity for some. Simple problem free installment and no stresses over chasing for change each time you buy something most likely is a significant advantage of utilizing a mobile wallet. While today numerous global players are giving mobile wallet administrations in India, MobiKwik is one of the pioneer Indian mobile wallet organizations, that regardless of much rivalry has cut a specialty for itself. 


MobiKwik's valuation is assessed at $414 million (as of March 2020 financing round) 


This review is about the excursion and working of this effective Indian startup - MobiKwik, which was begun with the sole objective of making installments exceptionally simple and a good time for each Indian. 


MobiKwik - Company Highlights

Startup Name

MobiKwik

Origin Country

India

Headquarter

Gurgaon

Founders

Bipin Preet Singh & Upasana Taku

Sector

Digital Wallet, Fintech

Founded

2009

Revenue

Rs. 379 crore (FY20)

Valuation

$414 million (as of March 2020 funding round)

Website

mobikwik.com

Parent Organization

One MobiKwik Systems Private Limited

 

How was MobiKwik Started 

Singh began MobiKwik in 2009 when he was worn out on his accommodating corporate work and was hoping to explore new territory throughout everyday life. He needed to make a basic payment stage for prepaid mobile clients to recharge their cash. Since recharge is a little ticket size exchange, he made a digital wallet where clients could keep the cash and recharge at whatever point they needed. 


He cultivated the organization with $250 thousand of his own cash, built up the site and payment alternatives, and leased office space in Dwarka, Delhi. The underlying assistance was a site with a Closed wallet facility, however throughout the long term, MobiKwik stretched out its support of mobile applications. The organization dispatched its android application in 2012.


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Founders of MobiKwik and group 

Bipin Preet Singh and Upasana Taku are the founders of MobiKwik. 


Bipin Preet Singh - Founder and CEO at MobiKwik, Bipin has worn a few caps – from writing Java code to Customer Support and Marketing. He moved on from IIT Delhi in 2002 with a degree in electrical engineering. After graduation, he worked at Intel, Nvidia and Freescale Semiconductors for a very long time prior to starting up. He has fiddled with advertising as a Partner with Star Auto and in community support as a volunteer with Janagraaha. 


Upasana Taku - Upasana, MobiKwik proprietor, accompanies a solid payment foundation as a senior product manager with PayPal (an eBay organization) in Silicon Valley and before that with HSBC at San Diego. She graduated with a Bachelor's in Engineering from NIT Jalandhar and a Masters in Management Science from Stanford University.


What is Mobikwik and How it Works? 

To make individual wallets repetitive, MobiKwik is one of the biggest mobile wallets in India. It permits Indian customers to store cash in a virtual wallet and afterward to utilize it across channels (mobile, work area, tab, SMS, IVR) to cover utility tabs and shop utilizing a wallet with enlisted shippers. 


For instance, as a client, you could utilize it to recharge your mobile by means of its Android/iOS/BB/Windows App, or use it to purchase transport tickets on any well known transport booking site or request and pay for pizza on the telephone. It is a prepaid monetary instrument affirmed by the Reserve Bank of India. 


MobiKwik was established by Bipin Preet Singh and Upasana Taku in 2009. The Gurugram-based digital wallet professes to have more than 107 million clients, 3 million shippers, and 200+ billers on its foundation


MobiKwik is super-protected. Each penny stored in your wallet is very much represented. You can likewise utilize the extra in-application security settings accessible on all mobile stages it is operational on. These are Android, Windows, and iOS. All administrations of the application are likewise accessible through a work area site and a mobile site. Furthermore, its basic UI is intended to give clients a smooth encounter. 


MobiKwik wandered out in the offline space and initiated mobile payments for physical stores, for example, Big Bazaar and Domino's Pizza and some more. It got the coveted Prepaid Payment Instrument license from the Reserve Bank of India on 18 July 2013. The organization has additionally gotten on a fundamental level endorsement from the RBI to set up a Bharat Bill Payments Operating Unit (BBPOU), accordingly empowering clients from across all pieces of India, metropolitan and provincial, to pay their utility and accommodation bills through the MobiKwik wallet. 


The underlying assistance gave by the startup was a site with a shut wallet office, however throughout the long term, MobiKwik stretched out its support of mobile applications. Today it has changed itself into a full-stack fintech organization. One can do bank transfers, and can likewise take credits. The organization has tie-ups with NBFCs like Bajaj Finance, Aditya Birla, and DMI Finance


Concerning advances, it has numerous alternatives like a moment 3-minute advance, a credit line, and a term advance. It has likewise tied up with ICICI Lombard for coincidental insurance, and furthermore offers a few other insurance items like Online extortion assurance, dengue insurance, clinic money, and so forth to give some examples. 


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MobiKwik - Business Model and Revenue Model 

The business and income models as of now comes from thin spreads between deposit rates and investments in government paper under one year, and charge based incomes by strategically pitching insurance and common asset products. 


MobiKwik - Competitors 

MobiKwik's main rivals are Paytm, Freecharge, Google Pay (prior Tez) and PhonePe. On the wallet front it hobnobs with Paytm, which has more than 60 million wallet users. In any case, it has a solid spotlight on the wallet, while Alipay-upheld Paytm is following an even methodology and has forayed into B2C commercial center. 


MobiKwik - Growth and Revenue 

On June 10, 2019, MobiKwik revealed a 5 times year-on-year development to Rs. 362 crore in the gross exchange estimation of the IMPS (Immediate Payment Service) store move business. With 6.7 lakh exchanges during May 2019, it is targeting Rs 10,000 crore worth of moves, till the finish of FY 2020. According to National Payments Corporation of India, MobiKwik has 26 percent portion of the whole IMPS move market in India. 


In FY19, MobiKwik's income remained at Rs 184.6 crore, while it remained at Rs 69.6 crore in FY18. 


In FY20, The net income of MobiKwik flooded 134% to Rs. 379 crore. 


"This is the third continuous year where we have exhibited higher than 100% development. Our money misfortune has diminished 91 percent, a year ago on an income of Rs 162 crore, we had lost in real money Rs 98 crore, versus the current year's income of Rs 379 crore, we have lost just Rs 9 crore in real money" Says Upasana Taku, Co-founder and COO, Mobikwik 


MobiKwik, has a group of 325 workers who works in 3 significant portions Consumer Payments, Fintech (Credit, shared assets, and so on), and Payment Gateway. In FY20, buyer payments represented 63 % of the net income, Fintech for 25 % and Payment Gateway for 12% of all out net income. 


MobiKwik's shipper facing Payment Gateway Business (through its auxiliary Zaakpay) enrolled net income of Rs 190 crore in FY20, contrasted with Rs 101 crore in FY19 on a standalone premise. 


India's payments market is divided with around 60 odd banks for internet banking, various degrees of confirmation on charge and Mastercards and a by and large convoluted electronic payment experience for the buyer. MobiKwik Wallet improves all that with a 1-click Payment stream on your telephone, tablet or PC which works a similar way without fail. 


As a client, you simply need to believe it with your cash and then you can shop on any shipper without disclosing your bank or card subtleties. And obviously, get select limits and offers each time you shop using the wallet. One can likewise bring in cash through the application by referring a companion on the stage. With the organization venturing into new verticals, and having obtained a gigantic client base, MobiKwik is unquestionably digging in for the long haul. The organization also has exciting designs for what's to come. 


MobiKwik - Funding and Investors 

MobiKwik has raised an aggregate of ~ $161.9M in funding. 

Its latest round was on December 4, 2020 for Rs 52 crores drove by Hindustan Media Ventures (investment arm of HT Group) with interest from Kris Gopalakrishnan's (Infosys Co-founder) family office Pratithi. 


The funding round qualities MobiKwik at an expected $414 million, 31% higher than the reasonable market valuation it made sure about in the preceding round.


MobiKwik - Awards 

In 2014, MobiKwik won the mBillionth Award South Asia in the class of Mobile Business, for socially significant commitments to South Asia's digital infrastructure.


As uncovered by prime supporter Upashana Taku, MobiKwik is eyeing to dispatch IPO by 2022.