BUSINESS

Bajaj Finance to buy 11% stake in Digital Payment platform Mobikwik

Mobile wallet company Mobikwik has sold 10.83% stake for Rs 225 crores (approximately $35.34 million at current rates) to Bajaj Finance. In a BSE filing, Bajaj Finance said it has entered into a subscription agreement with One MobiKwik Systems.

The non-banking financial company has entered into a subscription agreement with One MobiKwik Systems. The company that owns MobiKwik, under which it will acquire 10 equity shares and 2.71 lakh compulsory convertible preference shares (CCPS), Bajaj Finance said in an exchange filing.

Announcing the association, Bipin Preet Singh, CEO, Mobikwik stated “Our partnership with BFL will enable us to realise our vision of performing all the functions of bank yet retain our core competency of being India’s leading e-wallet and we strongly believe that this combined value proposition will attract millions of new customers to choose wallet led mobile banking transactions. In short, Mobikwik transforms itself as a new-age bank where our digital transactions will lead to lowering of lending rates and increased supply of money in the Indian economy.”

The company said the conclusion of the transaction is subject to fulfillment of certain conditions in due course. The company has also entered into a shareholders’ agreement which would become effective on the conclusion of the above investment transaction, the filing further noted.

Post conversion of CCPS, Bajaj Finance would hold approximately 10.83% of the equity in MobiKwik on a fully diluted basis, approximately valuing it over Rs 2,000 Crore. However, MobiKwik did not comment till the official statement is released.

Earlier this year, MobiKwik had said it is looking at raising funding for its expansion plans as it looked to compete with larger rival Paytm that is backed by deep- pocketed investors like Alibaba and SoftBank.

Mobikwik has so far raised over USD 85 million in funding from investors like South Africa’s payments major Net1, Sequoia Capital, American Express, Tree Line Asia and Cisco Investments. Read more about Indian Startup Ecosystem.

Looking for good home made food at office? Try TinMen Prices start at just 70 RS per meal.

Bajaj Finance to buy 11% stake in Digital Payment platform Mobikwik
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

INDIAN CEO provides latest business news about Indian CEOs, startups, business, funding, founders, new ideas, technology, apps, gadgets

Stay tuned to get latest updates on startup business in India and listen right from heart of Indian CEOs.

INDIAN STARTUP VENTURES LLP

Partner

AWS Activate Partner

Subscribe for Insider Updates

Get Stories delivered to your Inbox

Copyright © 2015 INDIAN CEO. A Indian business news magazine

To Top