MobiKwik may get $100 million funding from BlackRock and others
MobiKwik, which competes with firms such as Paytm and FreeCharge in digital payments space, is now going to get a big boost in its endeavors. Reports suggest that MobiKwik is on the verge of getting a massive $100 million funding from BlackRock, Bank of Baroda and Canara Bank and it is currently being valued at about $1 billion. Here's what you need to know.
The New Delhi-based firm is currently negotiating the terms of the funding, according to a Bloomberg report. Authorities from Canara Bank, BlackRock, Bank of Baroda and MobiKwik have not commented on the queries made regarding this funding as of yet and are keeping it under the wraps. MobiKwik will become the second unicorn of India's FinTech industry if this deal takes place.
The term "unicorn" is used to describe start-ups, which are valued at over $1 billion; some examples Indian unicorns are Flipkart, Mu Sigma, InMobi, Paytm, Zomato, ShopClues, Ola, Quikr, amongst others. India's first FinTech unicorn was One97 Communications Ltd, which runs Paytm and is backed by Alibaba Group Holding Ltd. Paytm is currently negotiating with SoftBank for a massive funding of Rs. 12,000 crore.
MobiKwik is backed by Sequoia Capital, American Express Co., and Tree Line Asia Master Fund and was founded by Bipin Preet Singh and Upasana Taku in 2009 and has a relatively strong presence in the segment. However, even if it does secure the funding, its coffers will still be less deep than that of Paytm's.
Advertising Standards Council of India (ASCI) had recently summoned MobiKwik based on a complaint that its advertisements were misleading in nature. The New Delhi-based digital payments service provider had claimed in the ads that its MobiKwik E-wallet feature was "India's most secure e-wallet" and ASCI deemed it as "misleading by exaggeration."
