Digital Payments Company MobiKwik is bolstering its fiscal services offering with the launch of an investment deposit product called Xtra for its consumer and trafficker mates. The company formerly has means under operation (AUM) of Rs 101 crore for the product, cofounder Upasana Taku told ET in a commerce.
The product, which has been tested over the once month, allows druggies to invest as little as Rs1,000 and looks to give interest of over to 12% per annum on these deposits, with an option to withdraw the corpus at any time. The deposits will be invested by a peer- to- peer non-banking fiscal company (NBFC) mate as loans to MobiKwik guests. MobiKwik has partnered with P2P NBFC LendBox for the immolation.
MobiKwik’s Xtra isn’t a new immolation in the fintech assiduity, with several other enterprises including Cred and BharatPe foraying into the P2P lending order last time. Last week, Cred said it was investing $10 million in P2P NBFC Liquiloans, which powers its P2P lending product Credit Mint.
“Utmost of the P2P investment products from other fintechs are concentrated on select parts of consumers. We wanted a large base to profit from the returns. Also we’re offering upto 12% returns, advanced than certain other fintech enterprises, with a low entry investment hedge of Rs1,000. We’ve launched Xtra keeping in mind that traditional fiscal instruments similar as fixed deposits offer interest as high as 6% at present, ” said Taku.
She added that the company is confident of the returns coming in since the deposits will be furrowed back by Lendbox as loans to its client base on MobiKwik. At present, MobiKwik offers instant loans and buy- now- pay- latterly results to its druggies. For the time ending March 31, 2022 (FY22), earnings earned from credit comprised nearly 25% of MobiKwik’s overall earnings. Still, over the once many months, credit has formerly gauged to 50% of MobiKwik’s yearly earnings during this financial, Taku added.
Before this month, MobiKwik blazoned its financial results for FY22. It reported an 80% increase in earnings to Rs543.2 crore, while losses increased 15% to Rs128.16 crore from Rs111.3 crore in FY21. “For this fiscal time (FY23), fiscal services (including credit) will be 50% or advanced in terms of (overall profit) donation. And in the coming financial it’ll surely exceed payments.
The GMV (gross wares value) of payments is also growing. It grew by 130% between FY21 and FY22. But perimeters in that business are low, especially compared to fiscal services,” added Taku. MobiKwik claims to have 130 million druggies and 3.7 million merchandisers on its platform. The company has stalled plans for its original public immolation (IPO) amid a broader correction in fintech valuations.
MobiKwik entered blessing from capital requests controller, the Securities and Exchange Board of India (Sebi), in October last time to go ahead with its Rs1,900 crore IPO. Lately, the Reserve Bank of India (RBI) reportedly rejected MobiKwik’s operation to operate Zaakpay, its payment gateway service, as a payment aggregator.
We are a Fintech company – one of the largest mobile wallets and one of the largest Buy Now Pay Later (BNPL) players in India. Digitally paying users have been rapidly growing in India in the last decade, but the credit card penetration in the country is still only 3.5%. We are focused on addressing the unmet credit needs of the fast growing digitally paying users by combining the convenience of everyday mobile payments with the benefits of BNPL.
Founded in 2009 by Bipin Preet Singh and Upasana Taku, we commenced operations as a mobile wallet to make digital payments convenient for our users. Our use cases have since expanded to include bill payments, ecommerce shopping, food delivery, petrol pumps, large retail chains, pharmacies, kirana stores, etc. Our platform also enables peer-to-peer payments via unified payment interface (“UPI”), MobiKwik Wallet as well as MobiKwik Wallet to bank payments. Over the years we have amassed over 101 million Registered Users and more than 3 million ecommerce, physical retail and biller partners.
In order to further enhance our value proposition to our online merchants, we introduced our payment gateway subsidiary Zaakpay in 2012. Zaakpay enables online websites and mobile apps to collect payments from their users using multiple payment options, including debit cards, credit cards, mobile wallets, UPI and net banking. In May 2019, we launched MobiKwik Zip, our flagship BNPL product, with a focus on the Indian middle-class population to enable them to make payments for daily life use cases. MobiKwik Zip is focused on providing this unserved Indian population their first experience of credit.
We are a technology-first company leveraging big data analytics and deep data science (including machine learning) to continuously delight users and merchants on our platform. Our mission is to build a world class payments and credit product for Bharat!
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