Paytm, India’s leading wallet and payments company now backed by high-profile investors like Alibaba and Softbank, has always been on the top when it comes to digital payment market in India. Call it the first mover’s advantage at work. On top of that, last year’s demonetization came like a sweet spring for the whole online transaction business in India. Paytm was the biggest gainer of demonetization among all wallet businesses in India. But, there is another wallet and payments solution that is growing quickly, MobiKwik.
MobiKwik- the brand which focuses entirely on mobile payments and stands second to Paytm in India- is pretty confident that the company can convert their unidirectional approach towards online payments into an advantage when competition is focusing more towards diversifying into other fields like e-commerce and banking.
Recently, in a talk with TechCrunch, Co-founder Upasana Taku confirmed that they are currently in a negotiation for an investment of $100 million-$150 million which is going to come at a valuation of $1 billion. Taku declined, when asked about the major names her company is going to receive funds from, but made it clear that there is only one major strategic investor involved along with some financial institutions. Expect the round to be closed in next couple of months, putting the company into much valued tech unicorns club.
Well, that’s a lot of money to put into a strategy and we hope MobiKwik has a polished one as they are going against Paytm; top of the league. As of now, plan is to invest around $45 million on expanding the brand’s presence and offices to new users and merchants.
Paytm is pushing its business into e-commerce, influenced by Alibaba’s presence. That’s not it, they are stepping into digital banking as well and if the sources are correct, there is yet another project which is going to launch soon and drives heavily from Chinese market.
“It is reneging on payments while it is pushing bank and e-commerce services. Something’s got to give, it is not possible to do justice on 10 different verticals.” She told to Techcrunch. She also quoted Ola money’s example to justify her statement. “I don’t see Ola Money accepted in many places”
Upasana Taku also opened up about the company’s future goal of providing financial services like insurance, loans, and investing alongside partners, all via co-branded wallet app. Today digital payment accounts for just 15 percent of the total amount of $1.5 trillion in India and she believes that number can increase up to even 70 percent in next few years.
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