Mobile wallet company Mobikwik has posted a loss of Rs 109 crore for FY16, according to the firm's latest RoC filings.
Mobile wallet company Mobikwik has posted a loss of Rs 109 crore for FY16, according to the firm’s latest RoC filings. The company founded by Bipin Preet Singh and Upasana Taku has seen its losses widen by 165%, compared to FY15 when it registered a loss of Rs 41 crore. However, the company’s revenue rose by 192% during FY16. Its revenue for the period stood at `38.07 crore, against a revenue of Rs 13.07 crore in FY15. The company has also raised Rs 225 crore from Bajaj Finance in August. This has resulted in one of its largest investors. South African investor Net 1, has meanwhile, reduced its stake in the company from 13.5% to 12%.
The company claimed that the fresh round of capital infusion will help the company to expand its user base from its current 5.5 crore to 15 crore by the end of 2018. Recently the company had committed to spending Rs 50 crore in setting up 13 new offices across India, apart from increasing its headcount from 290 to over 1,000 employees by the end of next year. Net 1 in a filing with US SEC last week, said, Mobikwik has over 55 million users and 1.5 million merchants in India. It said in a statement, “We agreed to make an equity investment of up to $40.0 million in MobiKwik over a 24 month period. We made an initial $15.0 million investment in August 2016 and a further $10.6 million investment in June 2017.”
Recently Mobikwik’s rival and Snapdeal-owned Freecharge was sold to Axis Bank for about Rs 385 crore. Apart from Paytm that is deeply funded, MobiKwik will also face stiff competition from the likes of Amazon Pay and Flipkart’s Phone Pe that are strongly backed by their parent companies.
Mobikwik is backed by Net 1, Sequoia Capital, MediaTek, American Express and Tree Line Asia Master Fund.