Mobikwik a Fin-Tech company is expanding its services by providing instant micro loans to wallet users running short on balance to boost digital payment usage in India. It competes with Paytm backed by Alibaba. It has already provided loans to around 25k users.
Mobikwik was founded in 2009 by Bipin Singh and Upasana Taku. It is a popular mobile wallet app in India used for bill payments, P2P money tranfer and shopping. It aims to reach its GMV- Gross Merchandise Value of $ 1 billion by financial year 2016-2017. It is also planning to add 10-12 banks and non banking finance companies to their service.
Mobikwik are further providing pick up cash service in Mumbai, Delhi, Jaipur and Bangalore for the customers who does not have a bank account or cards. They have around 80k outlets where customers can deposit cash. It recently raised a funding of $50 million from MediaTek a Japanese payments firm Gateway and Taiwanese chip maker.
Upasana Taku Co-founder of Mobikwik said
“These are micro loans, about Rs 500-2,500, given to users when they are running short on balance while making a purchase. We are happy with the product, the repayment rates are around 97 per cent. We are now looking at expanding this.”
Upasana Taku also said
“Based on how much money the user loads on to the wallet and his purchase history, we determine the credit worthiness. These small loans is a way of boosting the user’s confidence in using digital payments. We are already seeing about Rs 7-8 crore worth of such transactions and expect this to see a 10X growth in the near future.”