In the era of digitalization mobile wallets as well as digital payments have become an essential and vital part of human life. One of the early introducers of the financial revolution in India is MobiKwik, India’s leading fintech company that has significantly changed the lives of millions of users by modernizing their approach to money.
Here in this article you will find the history of MobiKwik, its functionalities and how it is contributing towards creating a digital wallet services revolution in India.
MobiKwik: Overview
MobiKwik, initially started its journey as a player in the mobile recharge space in 2009 and later evolved to a financial technology company spearheaded by Bipin Preet Singh and his wife, Upasana Taku.
MobiKwik is now taken up by 107 million users and 3 million merchants and is rightfully considered as one of the most successful digital payment companies in India.
The evolution of MobiKwik is a perfect example of how a pure start-up venture can be established. Bipin Preet Singh, an IIT Delhi graduate was employed with a corporate company before he found out that there was a gap in the market for a basic online platform for mobile recharges. Founder, Singh, funded Mas MobiKwik with Rs 2,25,000 of his own money and created the first version of MobiKwik as a website with a closed wallet feature. .
In the early days it was a lot as Singh had to take up various roles that included coding as well as customer relations. Yet, the inherent social quest to bring complex digital transactions into the everyday lives of any Indian citizen then started to work wonders for the company.
Growth Story of MobiKwik
The growth story of MobiKwik can be traced back to the year 2012 – the time when the name Android started becoming popular, the company rolled out its Android app to the public.
Subsequently, while the company grew in size, Upasana Taku took up the role of being a co-founder of the firm after she worked for PayPal as well as HSBC. Both the founders together navigated MobiKwik in this new age of fintech startups and tried to come up with innovative solutions which were more relevant to the target user-base.
Key Milestones in MobiKwik’s Journey
1. 2013: Got the approval of Prepaid Payment Instrument from Reserve Bank of India.
2. 2015: Linked processing of card payments with Uber India.
3. 2017: Introduced an online credit feature for the consumers.
4. 2018: The Company purchased Clearfunds which is an investment platform in mutual funds.
5. 2021: The new year saw the company obtain unicorn status with a value of above $ 1 billion.
MobiKwik’s Core Services: Going Beyond a Mobile Wallet
Unlike other digital wallets MobiKwik began as a mobile recharge aggregator but has transitioned into a full-fledged fintech market.
Here are some of the key services offered by MobiKwik:
1. Digital Wallet: The core of MobiKwik services aimed at helping the users to store the money and make instant and safe transactions in any internet-site.
2. Bill Payments: It can directly cater the need of paying utility bills; recharging of mobile phones and other routine kinds of payments.
3. UPI Payments: MobiKwik has incorporated this with UPI (Unified Payments Interface) which is used to make instant transactions between the bank accounts directly.
4. Digital Credit: Some of the financing products include instant loans, credit lines as well as the “buy now pay later” products.
5. Investment Products: Some of the features of the app which makes it convenient are that users can directly invest in mutual funds and other financial products offered through the app.
6. Insurance: Some of the insurance products which are offered by MobiKwik include accidental insurance and health insurance.
7. Merchant Services: The strategies that this company provides and the services and products that it sells include payment gateway solutions and others use to accept digital payments.
How MobiKwik Works?
To provide its clients with the greatest convenience of using digital payments, MobiKwik has a highly intuitive interface.
Here’s a quick overview of how it works:
1. User Registration: The app is free to download on google play store or Apple store and the easiest method to sign up is to use a mobile number.
2. Add Money: Top up your MobiKwik wallet through different ways which are debit/credit cards, net banking, or Unified Payments Interface.
3. Make Payments: It allows the users for payment of bills, online shopping or to transfer the amount of money to any of their friends.
4. Earn Rewards: The model of operations adopted by MobiKwik is that of providing cashback and other kinds of bonuses for the purchases made through the application.
5. Access Financial Services: That means you can apply for loans, invest in mutual funds or buy insurance right through the app.
MobiKwik- Key Strategies Behind Its Market Success
Despite the great amount of competition in the sphere of fintech, MobiKwik has been able to establish a rather large market share.
Here are some factors that contribute to its success:
1. Focus on Tier 2 and 3 Cities: For a long time, many fintech organisations operate mostly within the metros but MobiKwik has developed the Tier II and III cities.
2. Robust Security Measures: It features enhanced security and protection measures and mechanisms to ensure user information and other transactions carried out on the platform.
3. Offline Payments: Instead, as a mobile wallet app, MobiKwik has moved into the actual store to enable users to make payments at physical stores.
4. Data-Driven Approach: It uses the users’ information to promote tailored services and products in the field of finance.
5. Strategic Partnerships: This has been made possible through partnership with leading brands and businesses that have made MobiKwik more relevant.
MobiKwik’s Business Model
The analysis of MobiKwik’s business model gives the answer to the issue of its sustainability and future development.
The company generates revenue through multiple streams:
1. Transaction Fees: MobiKwik makes its revenue from commissions which it receives from each transaction conducted through it.
2. Merchant Services: Receipts from other services such as payment gateway solution and other merchants services offered by MobiKwik.
3. Financial Products: Amount received from the sales of credit, insurance and investment products.
4. Advertising: Advertisement placements inside applications, and sponsorships with brands and businesses.
5. Data Monetization: Information collected on users is of importance when it comes to things like marketing specific products or designing a product to suit certain demography.
The Road Ahead: About the Future Strategies of MobiKwik
As MobiKwik looks to the future, several key areas of focus emerge:
1. IPO Plans: The company has also applied for an IPO and it is expected that it will start trading in the stock market soon.
2. Expansion of Financial Services: The company aims at being the super app that incorporates all aspects of financial service including banking, investment etc.
3. Technology Innovation: Ongoing commitment in exploring AI, machine learning and block chain for improving the use of the site and user security.
4. Rural Penetration: Ways of reaching out into the more rural market in India through digitalization that is quickly taking root in the country.
5. International Expansion: Consideration of ways to reach out and offer service to other markets that are emerging.
MobiKwik – Funding and Investors
| Date | Stage | Amount | Investors |
| March 28, 2024 | Debt Financing | ₹500M | BlackSoil |
| January 16, 2023 | Series E | $555K | BlackSoil |
| August 4, 2022 | Debt Funding | $35 Million | BlackSoil Capital |
| December 30, 2021 | Pre-IPO Round | $13.44 Million | Bennett Coleman |
| June 9, 2021 | Series G | $20 Million | Abu Dhabi Investment Authority |
| April 14, 2021 | Venture Round | $5 Million | – |
| December 2020 | – | $6.9 Million | Hindustan Media Ventures |
| November 4, 2020 | Series E | $5.57 Million | Hindustan Media Ventures |
| March 23, 2020 | Venture Round | $30 Million | – |
| February 20, 2020 | Venture Round | $500K | – |
| July 23, 2019 | Venture Round | $1.17 Million | NDTV Limited & Trifecta Capital |
| March 1, 2019 | Venture Round | $0.32 Million | Cisco Directors Gaurav Manglik & Tianying Fu |
| January 2019 | Venture Round | – | InnoVen Capital |
| December 2018 | Series E | $3.38 Million | Sequoia Capital India, GMO VenturePartners & Net1 UEPS Technologies, Inc. |
| August 2017 | Series D | $35.4 Million | Bajaj Finserv Limited |
| May 2016 | Series C | $50 Million | Sequoia Capital India, GMO VenturePartners, MediaTek, Net1 UEPS Technologies, Inc. & Tree Line Asia |
| April 2015 | Series B | $25 Million | Tree Line Asia, American Express Ventures |
| March 2014 | Series A | $2.5 Million | Sequoia Capital India |
| September 2010 | Seed | $500K | – |
Challenges and Controversies
Like any rapidly growing company in a sensitive sector, MobiKwik has faced its share of challenges:
1. Data Security Concerns: Data breach was an issue that surrounded the company in the year 2021 but the company offered a disclaimer and denied the vice. This incident was quite insightful especially to the fintech industry in regards to the need for data protection.
2. Regulatory Compliance: There is the need to always put effort in ensuring that one follows new laws as they are put in place when it comes to the fintech area.
3. Intense Competition: Till date the competition has been intense for online payments business both domestic as well as international players are competing fiercely in the country.
4. Customer Acquisition Costs: In the early stages of the market, it is relatively easy to acquire new users thus increasing its margins.
Effectiveness for India in Digital Economy
The growth of MobiKwik is very significant and it can be said that MobiKwik had been through almost all of the changes India went through during the digital revolution.
The company has played a significant role in:
1. Financial Inclusion: Through introducing millions of Indian citizens to digital financial services, MobiKwik has been instrumental in inducting the country’s citizens into the FinTech world.
2. Digital Literacy: Thanks to the easy-going navigation of the platform, numerous Indians have gotten accustomed to making digital purchases.
3. Empowering Small Businesses: Several merchants have launched mobile wallets through MobiKwik’s services which in turn has helped many traders to accept cashless payments thereby reaching out to more customers.
4. Promoting Cashless Economy: MobiKwik has supported the government’s vision of ushering in a cashless economy in every possible way.
MobiKwik – Products and Features
| Products and Features | Date |
| MobiKwik launches feature “Lens” | September 12, 2023 |
| MobiKwik wallet UPI feature launch | May 24, 2023 |
| MobiKwik UPI payment with Rupay Credit card Feature | February, 2023 |
| MobiKwik product launch “Xtra” | October, 2022 |
| MobiKwik launches “AutoBill Pay” feature | May, 2022 |
| MobiKwik launches the “Clickpay later” option |
Competitors of MobiKwik
| MobiKwik – Competitors |
| Paytm |
| Freecharge |
| Google Pay (earlier Tez) |
| PhonePe |
| eRecharge Bytes |
| Recharge My |
| Justdial Recharge |
Conclusion
As India is still in the process of transitioning into a digital economy, having entities like MobiKwik is very vital. MobiKwik Story: From Recharge Application to Complete Fintech Unicorn is an inspiring tale of innovation, hard work, and resilience.
This is because the company has placed a lot of emphasis on developing customer centric solutions, while its decision to grow its product offering in areas of financial services will serve it well in the future.
Thus, MobiKwik is one of many examples of how fintech battles are played out on the Indian market, showing that home-grown innovation has enormous potential for development in a digital economy.
