Digital payments service provider MobiKwik is raising about $30 million (Rs 223 crore) in fresh financing in an equity-cum-debt deal to fuel its expansion plans.
According to the company’s filings with the Registrar of Companies sourced by Paper.vc, MobiKwik has issued 1,17,585 compulsorily convertible debentures (CCDs) priced at Rs 9,440 each to Cayman Island-based MK SPV IX to raise Rs 111 crore. The Gurugram-based company has also entered into a securities subscription agreement to offer 1 share warrant (Series F tranche I warrant) for about Rs 76 crore.
The filings further show that MK SPV IX L.P has also subscribed to 39,185 Series F compulsorily convertible cumulative preference shares (CCCPS) and 10 equity shares at a price of Rs 9,440 per share, equating to Rs 37 crore.
The development was first reported by Entrackr.
Mobikwik, which has failed to attract bigger funding rounds like its rival Paytm, had been looking for a long-term strategic investor for financing. The company was in need of funds to stay afloat at least for the next 2-3 years.
Last July, the company reportedly raised $1.3 million from New Delhi Television Ltd (NDTV) and venture debt firm Trifecta Capital. In 2017, it had raised Rs 225 crore from Bajaj Finserv (NBFC). In the last one year, Mobikwik has also moved beyond digital payments, and added new businesses such as lending and micro-insurance.
Last year, MobiKwik was also reportedly in discussions with PayU to sell off its payment gateway business Zaakpay for $50-$60 million. The reports were, however, later denied by Mobikwik.
MobiKwik claims to connect 107 million users with more than 3 million direct merchants. According to its LinkedIn profile, the company aspires to back the financial needs of the Indians by making personal loans and insurance covers easily accessible to all. It claims to be the first company in the industry to offer instant personal loan of Rs 1 lakh on a mobile wallet and offer insurance covers at pocket sized premiums of Rs 20.
The company recorded a 92.3% jump in operational revenue to Rs 148.51 crore in FY19 as against Rs 77.21 crore in the previous fiscal, according to Entrackr. Its losses reduced by 32.13% to Rs 137.75 crore from Rs 202.98 crore in FY18.
