MobiKwik raised $100 million by Bajaj Finance

MobiKwik plans to raise US$100 million to boost expansion. Mobile wallet company headquartered in Gurugram, MobiKwik, recently signed a preliminary agreement with Bajaj Finance in an investment of Rs 225 crore (US$35 million) for a share of 10.83 percent ownership in a valuation of US$300 million.

Tinuku MobiKwik raised $100 million by Bajaj Finance

"We plan to raise about US$150 million and funding by Bajaj Finance is the first phase we are in talks with private investors and venture capitalists to collect more than US$100 million," said Co-Founder MobiKwik Upasana Taku.

MobiKwik was founded by Taku and Bipin Preet Singh in 2009 and claims to have a network of over 55 million users. The company has so far raised more than US$85 million from Net1, Sequoia Capital, American Express, Tree Line Asia and Cisco Investments.

Taku says more funding will come in the second half of the year. The deal with Bajaj Finance raises the company valuation above US$300 million. Collaboration MobiKwik and Bajaj Finance to launch many major industry and first sector services in applications.

Under the agreement Bajaj Finance will acquire 10 equity shares and 271,050 compulsory convertible preference shares (CCPS) or in the conversion of approximately 10.83 percent of equity in MobiKwik. The conclusion of the transaction is subject to the fulfillment of certain conditions in time.

Digital payments have attracted investors and grew significantly in India after the government's decision to ban letters of high denomination in November last year. Other mobile wallet companies such as Paytm and Hike have gained user growth and transaction volume on their platforms.