MobiKwik to be India's first debit-cum-credit wallet: Co-founder

New Delhi: After MobiKwik announced it had raised Rs 225 crore from Bajaj Finance, the digital payments wallet on Thursday said it was all set to become the country`s first debit-cum-credit wallet.

"Mobikwik is becoming India`s first debit plus credit wallet, where people could have exclusive credit lines, credit cards and EMI cards mapped through the app, increasing the purchasing power of users and enabling them to get lending products available at cheaper interest rates," MobiKwik Co-founder Upasana Taku told IANS over phone.

"We think that this will give us a `leapfrog effect` as all wallets in India are mostly debit wallets."

Consumer lending company Bajaj Finance on Wednesday informed the BSE that it has entered into a "Subscription Agreement with One MobiKwik Systems for acquisition of 10 equity shares and 271,050 compulsory convertible preference shares (CCPS)".

The BSE was also informed that post conversion of CCPS, Bajaj Finance would hold 10.83 per cent of equity in MobiKwik on a fully diluted basis, valuing it over Rs 2,000 crore.

Taku said MobiKwik will now provide people with access to buy all types of insurance through its app. In addition, users will get access to credit crads, EMI cards and personal loans through the app.

"We had set out a goal for ourselves to raise between $100 and $150 million. With this investment, we have raised around $33 million and we will continue to work towards raising the remaining $70-$100 million from important financial investors," said Taku, not willing to name any particular investment institution.

Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik is an Indian wallet major with a network of over 15 lakh direct merchants and 55 million plus users. It has raised funding from investors like Sequoia Capital, American Express and Tree Line Asia.