MobiKwik raises Rs 52 cr from HT group, Kris Gopalakrishnan's family office

Fintech firm MobiKwik on Friday said it has raised Rs 52 crore in funding, led by Hindustan Media Ventures, the investment arm of HT group.

The funding round also saw participation from Infosys co-Founder Kris Gopalakrishnan's family office, Pratithi, a statement said.

The fresh capital will be used for growth in all key business segments of the firm - digital credit and cards, consumer payments, and payment gateway, it added.

"The HT group and Kris coming on board is very exciting for us and is an endorsement in our business model of bringing digital credit to 100 million Indians. We are on the road to IPO and look forward to their guidance on building a long lasting sustainable company and creating impact via Financial Inclusion," MobiKwik co-founder and CEO Bipin Preet Singh said.

MobiKwik said it has seen significant traction in its digital credit card business and has pre-approved 15 million users for its credit product, which is availed by users for making payments via the MobiKwik wallet and the MobiKwik Blue Amex Card.

"MobiKwik has carved out a unique spot for itself with its 'digital credit card model' within India's fintech ecosystem. The company has demonstrated good financial performance by scaling revenue while becoming breakeven profitable," Piyush Gupta, Group CFO and CEO Strategic Investments of the HT group, said.

On the back of credit and payments business, the firm has doubled its revenue for three successive years and significantly reduced its cash burn to near zero, the statement said.

The company had posted Rs 379 crore in revenues as of the financial year ending March 2020, a growth of 133 per cent year-on-year, it added.

"A successful new business is one which creates jobs, is sustainable, and can run for a long time. The MobiKwik team is executing with this vision and I am happy to support and encourage them," Gopalakrishnan said.