Bajaj Finance Ltd said on Wednesday, it would buy nearly an 11 percent stake in mobile payments wallet company One MobiKwik Systems Private Ltd for about 2.25 billion rupees ($35.36 million).
Bajaj Finance will enter into a subscription agreement with MobiKwik to buy 10 equity shares and 271,050 compulsory convertible preference shares (CCPS), Bajaj Finance said.
Post conversion of the CCPS, the company would hold about 10.83 percent of equity in MobiKwik on a fully diluted basis, the company said in a statement.
Commenting on the partnership, Rajeev Jain, Managing Director, Bajaj Finance Limited said, “We aim to combine the synergies of both the organizations - deep rooted customer analytics and extreme focus on digital-oriented eco-system will make this a disruptive proposition amongst our existing products. Bringing in debit and credit option in one app will facilitate stronger customer convenience, stimulating higher spends.” Announcing the association, Bipin Preet Singh, CEO, Mobikwik, said “Our partnership with BFL will enable us to realize our vision of performing all the functions of bank yet retain our core competency of being India’s leading e-wallet and we strongly believe that this combined value proposition will attract millions of new customers to choose wallet led mobile banking transactions. In short Mobikwik transforms itself as a new-age bank where our digital transactions will lead to lowering of lending rates and increased supply of money in the Indian economy”. MobiKwik is an Indian wallet major with a network of more than 15 lakh direct merchants and over 55 million plus users. Founded in 2009 by Bipin Preet Singh and Upasana Taku, the company has raised three rounds of funding from Sequoia Capital, American Express, Tree Line Asia, MediaTek, GMO Payment Gateway, Cisco Investments and Net1. Bajaj Finance Limited, the lending and investment arm of Bajaj Finserv group, is one of the most diversified NBFCs in the Indian market catering to more than 19 million customers across the country.
