India’s MobiKwik denies acquisition talks with PayU, eyes fresh funding

(from left to right) MobiKwik CEO Bipin Preet Singh, MobiKwik COO Mrinal Sinha, MobiKwik co-founder and director Upasana Taku, Clearfunds founder and CEO Kunal Bajaj and Clearfunds COO Sarosh Irani

Digital payments service provider MobiKwik has denied holding acquisition talks with Naspers-backed payment gateway PayU, and is instead eyeing a fresh fundraise, a company spokesperson told Mint without revealing names of investors.

A Times of India report on Tuesday said Gurgaon-based MobiKwik held discussions with PayU to sell off its payment gateway business ‘Zaakpay’ for $50-$60 million. The report quoted a PayU spokesperson who also denied being in talks with MobiKwik for any buyouts.

“MobiKwik continues to sustain rapid growth, has diversified into financial services – and as a result is the first Indian fintech company to breakeven at scale. Its key shareholders, including Bajaj Finance, Net1, and Sequoia, are supportive of MobiKwik’s strategy and success. MobiKwik and its wholly owned payment gateway subsidiary both are currently fundraising,” a MobiKwik spokesperson added in an emailed response to Mint’s queries.

Reports of a buyout also come at a time when MobiKwik reportedly turned profitable at a unit level before deduction of taxes, depreciation , and amortization. A TechCrunch report last month said MobiKwik may report a profit after taxes by FY2020-21, with plans to go public within 4-5 years’ time. However, MobiKwik is yet to file its audited financials for FY2018-19.

This article was first published on livemint.com.

Singapore Reporter/s

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Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.