One Mobikwik Systems Ltd. is currently in constant communication with various investors and fund management companies so that the company can receives funds which amount to at least $ 100 million USD to scale up their business and expand the company’s operations. This news comes directly from a co-founder of Mobikwik after the company came to a difficult conclusion to postpone their initial public offering after realising it is a not suitable time to do so.
When asked what the company plans to do with the funds if they receive them, the co-founder of the company, Upasana Taku said that they plan to increase and boost their marketing to widen their consumer base and to increase their work force and even delve into the field of acquisitions. He also went on to say that they will go public and initiate their initial public offering but they are patient and waiting for the right time.
Mobikwik is one of the pioneers in the financial tech industry in India. The company is a payments service provider. They offer a whole range of financial services and even provide an online digital wallet for its users. The company can transfer money to the said wallet and access it easily from their smart phone to make various types of payments. The company was founded 13 years ago back in 2009 and its head office is situated in Gurgaon, Haryana.
One of their biggest and main competitors, Paytm went ahead with their initial public offering back in November, 2021 and it went on to be one of the biggest IPO failures in Indian start-up history. The share price of Paytm fell to slump and even though it has been around 8 months since going public, the company still has not recovered from that rout. Mobikwik has been studying what went wrong with their IPO and will be sure not to make those mistakes. The company’s unlisted shares have also been forced to bear the brunt of the tech industry in the India going through a massive slump with low fundings all across the space.
The ‘buy now pay later’ feature has been booming in this country over the past few years and Mobikwik has been dominating that aspect with well over 10 crore active users and they plan to increase that number with their investments. However, the company is still not a unicorn as they recently were valued at $ 700 million USD and they plan to cross that landmark as soon as possible.