Mobikwik raises additional $6.6 million in Series B funding round

By | December 29, 2015
MobiKwik


Mobikwik, an Indian-based online recharge platform has announced it raising $6.6 million in its Series B round of funding from its existing investors Sequoia Capital and Tree Line Asia. The fund received is a combination of both debt financing and private equity. Singapore-based Temasek-owned venture debt firm InnoVen Capital has also joined the round with $1.81 million.



MobiKwik

Founded in 2009 by its founder Bipin Preet Singh and Upasana Taku, the company MobiKwik allows prepaid mobile, DTH and data card recharges, post paid mobile bills payment and utility bill payments for electricity, gas and landline connections. These services can be availed through SMS, phone and mobile apps. Quite recently, it has partnered with IRCTC, enabling the users to book railway tickets in a convenient and secure manner with the help of their smart phones. Now, the company does more than 500 railway bookings every day on the IRCTC app with an average ticket of Rs.700 (approx $10).

This round of funding is part of the company’s Series B round, with funding from other existing investors – American Express and Cisco, also expected to take place in the near future. Mrinal Sinha, chief operating officer at MobiKwik said, “This is not new funding but part of the April funding which was slated to be released later this year.” Last April, it raised around $25 million in the first part of Series B funding led by Tree Line Asia along with Cisco Investments, American Express and Sequoia.



It has been reported that MobiKwik is looking to dilute around 25% stake at a valuation of more than $400 million. Sequoia and Tree Line have been issued a total of 89,844 cumulative compulsorily convertible preference shares at 3,605.57 per share.

With the $1.8 million recently raised, MobiKwik plans to use it for its working capital needs. Right now, it is competing with Paytm and Freecharge in the mobile payments space.



India’s digital payments and services sector has grown rapidly in the past years and have received significant funding action in the past 12 months, with some of the top risk capital investors lining up to bet on this sector. Last September, China’s e-commerce giant Alibaba and its affiliate Ant Financial have invested $680 million in Noida-based One97 Communications while Snapdeal acquired FreeCharge in April for around $400-$450 billion.