Mobikwik to raise private funding as stock market turns bearish
With the stock market turning choppy, fintech start-up Mobikwik, which had filed a DRHP raise around $250 million through an initial public offering, is now looking to raise money from the private market.
“We will raise private money but we are not in dire need. The business was profitable for the first time in the December quarter on a topline of around Rs 150 crore and that will be maintained in the March quarter also. We are generating cash,” said Upasana Taku, co-founder of Mobikwik.
“MobiKwik’s first mover-advantage, a strong user funnel of around 25 million pre-approved BNPL users leveraging its consumer payments platform coupled with a 3.5 million strong merchant ecosystem has led to ever increasing user adoption and engagement with monthly spends of Rs 3,245 and 81% repeat rate,” said the company. According to Taku, Mobikwik’s unit economics have improved a lot in the past couple of years and as a result the company has had to invest about $50 million to grow its revenue by 2.5X over FY19. In FY22, the company expects that it will record Rs 550-600 crore in revenue – around a 100% growth over the previous fiscal.