Gurugram-based fintech Mobikwik raises $20 million from ADIA at over $700 million valuation

Ahead of the talks on June 27 2021, about homegrown fintech startup Mobikwik‘s fundamental public offering (IPO), UAE’s sovereign wealth fund Abu Dhabi Investment Authority (ADIA), has lapped up a minority stake in the startup for approximately $20 million at a valuation of $700 million.

Secured $20 Million

Mobikwik has secured a $20 million (Rs 150 crore) funding round from Abu Dhabi Investment Authority (ADIA), regulatory filings explained, evaluating the digital payments startup as higher than $700 million ahead of its public listing this year. Just months after raising $5 million from the hold of investors, the startup began with Series G round funding. The increased funding has seen Mobikwik’s valuation jump by almost 50% within just three months.

Abu Dhabi’s sovereign wealth fund acquired a recent minority stake of 2.7%, whereas the founders Upasana Taku and CEO Bipin Preet Singh mutually own about a 33.2% stake in the corporation. 

About the Company

Gurugram-based fintech, MobiKwik, a digital payment company established in 2009, renders a mobile phone-based payment method and digital wallet. Customers add capital to an online wallet that is managed for making payments. 

The Reserve Bank of India sanctioned the company’s use of the MobiKwik wallet in 2013, and in May 2016, the company started granting small loans to consumers as one of its service areas. The organisation launched its MobiKwik Lite mobile app in November 2016, devised for older 2G mobile networks and those in areas with feeble internet connectivity. In November 2016, the company proclaimed having 1.5 million merchants utilising its service and a user base of 55 million clients.

Mobikwik carries over one million daily transactions across its interface, including its digital wallet, UPI and bill payment services. The startup became an aggregator of mutual fund and small ticket credit services. It said it has about three million merchants on its system and assists almost 107 million users.

Purpose of Investment

The Gurugram-based startup had earlier said it plans to go public by the end of the year and advance capital to endure the listing expenses. The company is yet to file a draft red herring prospectus or declare a listing timeline. 

Many startups, such as Paytm and Zomato, have begun their respective public listing processes, which both the companies aspire to close later this year. 

The digitalised payment system has become a significant trend in India as the Covid-19 pandemic-led digitisation of the consumer ecosystem has backed companies, including Mobikwik.

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