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After powering digital payments for milk cooperative - Amul, mobile wallet player, MobiKwik is now looking to power Agricultural Produce Market Committees (APMCs) in the State to facilitate smooth cashless transactions for agri commodities trading.
The co-founder, Upasana Taku informed that the 7-year-old m-wallet player has laid out plans to further penetrate the market by covering rural market through its m-wallet services at APMCs and offline stores.
To make it more user-friendly, the company has launched the app in Gujarati after earlier launching it in Hindi.
"We had launched Hindi last month and Gujarati is the second language addition to the app. Soon we will power digital payments for APMCs, offline stores and also educational institutions," said Taku adding that the company has already started talks with premiere B-school, Indian Institute of Management-Ahmedabad (IIM-A) for offering cashless transactions on the campus.
After the November 8 announcement of demonetisation of Rs 500 and Rs 1000 notes, MobiKwik has seen rapid surge in the transactions through mobile wallet.
"We have seen 400 per cent rise in the transactions after the announcement. And about 30-35 per cent rise in the total registered users from 3.5 crore before to about 4.5 crore now. As per the RBI data, we are the second largest mobile wallet player in the country," said Taku.
The company, which has completed three rounds of fund raising with total $80 million since 2014, looks to turn to profit from 2018 onward. "Currently, we are spending about Rs 20 crore every month for user acquisition and penetration in the market. The revenue model is 1-2 per cent commission from the merchants. We do not charge the customers," Taku informed.
After the demonetisation announcement, new merchant sign-up in the small retail segment, which includes traders - has grown from 300 per day to 6000-8000 per day now. The average ticket size in this segment is Rs 250 daily, whereas the mid-size segment has ticket size of about Rs 2,500 per day.
Mobile wallet transactions are estimated to leapfrog from Rs 5,500 crore in 2015-16 to Rs 30,000 crore in 2022. From However, currently, only 20% bank customers depend on digital transaction while 75% still go the traditional banking way.
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