MobiKwik which is an India based mobile wallet startup has landed a strategic investment of $40 million from Net1. Net1 company is the provider of alternative payment systems. Net1 also offers a payment processor system that uses biometrics, issuing services for Visa, MasterCard and UnionPay. There current value is around USD 480 million.
Mobikwik will be using Net1’s Technology
As part of the agreed terms, Net1 will be integrating its “Virtual Card” technology into the app of MobiKwik wallet. The technology will be used to help 100000 merchant partners of Mobikwik to get access to a wider payment selection. As indicated by the name also, this technology mainly works by developing a virtual card. It uses the mobile phone of the user as a sign of identity for processing transactions same like physical credit card
A statement released by Net1 says that this deal will give them chance to work with one of the finest mobile wallet startup in India. Mobikwik wallet claims to have more than 32 million users. They will be partnering with them for capturing the market and grow business in India. The smartphone ownership in India is growing, and they want to cash on it
Statement Released by CEO of Net1
The CEO and chairman of Net1 said that with strategic investment in Mobikwik, they will now have a meaningful participation in one of the largest growing digital payment markets. The size of India’s digital payments industry will reach $500 billion by 2020. He further said that Mobikwik has a set target of having 500000 merchants and 150 million users. The introduction of Net1 technologies will boost their differentiation to users and value proposition, accelerate growth, increase acceptance and online and offline merchants.
The rivals of MobiKwik are Paytm (backed by Alibaba), and FreeCharge (owned by Snapdeal). They counts American Express, Cisco, Sequoia, Mediatek and Japan’s GMO among its existing backers. They have raised over $120 million including this new deal. $50 million Series B round, closed in May of this year, was their last financing.