MobiKwik raises $40 m in funding

Our Bureau New Delhi | Updated on January 17, 2018 Published on August 26, 2016

Investment by South Africa’s Net1 also gives the start-up access to its virtual card technology

Johannesburg-headquartered Net1 on Friday said it would invest $40 million in mobile-wallet provider MobiKwik. This strategic investment is part of MobiKwik’s Series C funding that began in May.

Nasdaq-listed Net1 is a leading provider of alternative payment systems with operations across South Africa and South Korea, among other countries.

The strategic partnership will result in Net1’s Virtual Card technology being integrated across all MobiKwik wallets. MobiKwik’s current shareholders include Sequoia Capital, Tree Line Asia, American Express, Cisco Investments, GMO Payment Gateway and MediaTek, as well as Bipin Preet Singh and Upasana Taku, the founders and executive officers

“Our strategic investment in MobiKwik provides us with meaningful participation in one of the largest and fastest-growing digital payment markets globally,” said Serge Belamant, Chairman and CEO of Net1.

Taku, a co-founder of MobiKwik, said, “We greatly value our partnership with Net1 and look forward to learning from their best practices in serving the un-banked and under-banked users, while taking progressive steps towards making India a cashless economy.”

Speaking to BusinessLine, Taku said the virtual card product will be available for MobiKwik users in about three months.

This will enable a MobiKwik user to use the prepaid virtual card even at those merchant establishments with whom MobiKwik has no formal arrangement for payments. “This virtual card facility will be available both for online and offline payments,” she added.

Net 1 has a primary listing on the NASDAQ and a secondary listing on the Johannesburg Stock Exchange.

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Published on August 26, 2016
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