MobiKwik is an Indian financial technology company, founded in 2009 that provides a mobile phone-based payment system and digital wallet.[3][4] In 2013 the Reserve Bank of India authorized the company's use of the MobiKwik wallet,[5] and in May 2016 the company began providing small loans to consumers as part of its service.[6]
In November 2016, the company reported having 1.5 million merchants using its service and a user base of 55 million customers.[7][8][9] The company employs over 325 people, operating in three segments including consumer payments, fintech, and payment gateway.[10]
History
MobiKwik founder Bipin Singh (second from right) at the 2016 Rise Conference
MobiKwik was founded in 2009[11] by the husband and wife duo, Bipin Preet Singh and Upasana Taku.[3][12] Singh, a 2002 graduate of IIT Delhi, seeded the company, developed the website and payment options, and rented office space in Dwarka, Delhi.[13] The initial service was a website with a closed wallet facility, but over the years, MobiKwik extended their service to mobile apps.[14] The company initially partnered with online merchants to make their wallet available as a payment option on e-commerce sites.[15]
MobiKwik launched a digital wallet system in 2012 that enabled users to deposit money online to use for bill payments and other features.[13] MobiKwik's semi-closed wallet was authorized by the Reserve Bank of India (RBI) in 2013.[3][16][17][17] They also introduced the feature of sending and receiving money via a mobile app.[18] In September 2014, Express Computer reported that MobiKwik was partnering with GoDaddy and other international companies to help them comply with Indian payment regulations.[19] In April 2015, MobiKwik claimed to have 15 million users, according to Forbes India magazine.[4]
In 2015, MobiKwik raised $25 million in Series B funding from Chinese investment firm Tree Line Asia, Sequoia Capital, Cisco Systems and American Express.[20] In May 2016, the company announced a $50 million Series C round, led by GMO Internet and MediaTek, along with existing investors including Sequoia and Treeline Asia.[21]
In a partnership with CashCare, MobiKwik began providing small loans between ₹500–₹2,500 to customers in May 2016.[22][23] The company launched its MobiKwik Lite mobile app in November 2016, designed for users of older 2G mobile networks and for those in areas with poor internet connectivity.[24][25] In the same month, MobiKwik had over 1.5 million merchants using its service and 55 million users.[7][9] Following the 2016 Indian banknote demonetisation in November 2016, MobiKwik witnessed a 400% increase in financial transactions using the service by late December 2016.[26]
In August 2017, Bajaj Finance picked up 10.83% stake in MobiKwik for ₹225 crore.[27]
In 2019, MobiKwik announced a new partnership with DT One to expand their service internationally.[28] In 2019, the company began offering loans, insurance and investment advice.[28]
In May 2020, Mobikwik was briefly removed from the Google Play Store for violation of Google's advertisement policy.[29]
On 25 February 2021, an Indian security researcher named Rajshekhar Rajaharia claimed that a hacker group called Jordandaven stole the KYC details of nearly 100 million MobiKwik users from a company server and put them up for sale on the dark web.[30] On 4 March 2021, company denied the claim and said it would take legal action against the researcher. Later, multiple independent researchers and users confirmed that their Mobikwik data was available online,[31] and on 30 March 2021, TechCrunch reported that company was hiring a third-party to conduct a forensic data security audit.[32]
The Abu Dhabi Investment Authority purchased a 2.7% stake in MobiKwik for $20 million in June 2021.[33]The Economic Times reported that MobiKwik had reached a valuation of $1 billion in October 2021, following a secondary employee stock ownership sale led by former Blackstone India chief Mathew Cyriac.[34] The same year, MobiKwik filed for an initial public offering (IPO) to raise ₹1,900 crore (US$257.04 million),[35] but later deferred its IPO plans.[36]
In 2022, Mobikiwik suspended transactions from its e-wallet services to all major crypto exchanges in India.[37]
In September 2024, MobiKwik received criticism after it suspended "anytime withdrawals" on its Xtra peer-to-peer lending platform. Investors complained that their money was being reinvested in new borrowers without their consent.[38][39] MobiKwik stated that the withdrawal policy was changed by its P2P partner Lendbox and that users will not be able to withdraw their money as per previous terms.[40]
