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.