India's digital payments space continues to witness more churn; MobiKwik will get financial muscle to take on Paytm; Bajaj Finance moves swiftly towards digital payments solutions for its customers
The Delhi-based company’s founders have not revealed its current value. However, the unicorn target suggests One MobiKwik Systems will be raising more money soon.
In a rapidly challenging space, MobiKwik remains the only credible, independent mobile wallet company with a degree of financial backing to take on Alibaba Group-backed One97 Communications, whose mobile wallet Paytm is widely seen as the biggest in India. Thus far, Mobikwik’s cautious, and frugal approach has helped founders Taku and Bipin Preet Singh, who is CEO, to remain in control of their own company.
That is likely to remain the case even after the latest stake sale to Bajaj Finance. This also gives them more say in the direction in which MobiKwik should push, and Taku has always maintained that profits are a priority. She has said previously that MobiKwik could be profitable once again in 2018, like it was in the earliest years for a while, before the need for expansion took over.
So while Bajaj Finance will work on the strategy, Taku is unlikely to let go of MobiKwik.
Even if one were to see the timing as a bit of a moving target, what is clear is that the founders have the discipline to use their money wisely, and once the latest funding round is complete, Paytm may see more competition. In turn, customers stand to benefit.