MobiKwik mobile wallet which is competing with Alibaba backed PayTm has raised fresh round of 44cr funding from Sequoia Capital and Tree Line Asia. MobiKwik was planning to raise 100m round earlier, But a smaller round indicates the difficulty to access the capital. Competing with a biggie like payTM and Freecharge(Acquired by SnapDeal) definitely needs muscle. It is not very clear on how much the company is valued at current date.
Wallet economy is growing at very fast rate as most of the 3rd party apps are integrating either paytm or MobiKwik wallet in to their apps. By numbers PayTM dominates the market but still has lot of scope for other players.
According to documents filed by the Gurgaon-based venture with the Registrar of Companies, Sequoia Capital, through its investment vehicle, Sequoia Capital India Investment IV, has pumped in an additional Rs 22.48 crore, while Tree Line Asia, through Tree Line Asia Master Fund (Singapore), has also invested about Rs 9.92 crore in the company.
This tranche, B4, is part of the company’s Series B round, with funding from other existing investors — American Express and Cisco, also expected to come in at a slightly later date.
“We are on track for our financial year 2016 fund raise, but do not have any specific updates as of now,” Sinha said.
In April, MobiKwik had announced that it had raised a little over Rs 150 crore in its Series B round of funding. As per records, Cisco Investments had put in about Rs 19 crore in May, prior to which MobiKwik had received a little over Rs 80 crore from Tree Line, Sequoia Capital and American Express.
India’s digital payments and services sector has seen significant funding action over the past 12 months, with some of the most prominent risk capital investors lining up to bet on the space.
More recently, Mumbai-based Citrus Payment Solutions raised $25 million in a new round that was led by existing investor Sequoia Capital and new investor, mid-to-growth stage private equity firm, Ascent Capital.
However, the past six months have seen a number of prominent investors slow down their pace of funding of Indian startups.