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Hindustan Media Ventures invests in fintech platform MobiKwik
Photo Credit: VCCircle

Financial-technology company One MobiKwik System Pvt. Ltd has raised Rs 41.5 crore ($5.6 million at current exchange rates) from Hindustan Media Ventures Ltd, according to a report.

Gurugram-based MobiKwik raised this capital as part of a Series E round, Entrackr reported, citing regulatory filings.

Hindustan Media Ventures subscribed to 41,375 Series E compulsorily convertible preference shares at Rs 10,030 apiece. This would give the fintech and payments firm a valuation of around Rs 2,575-2,650 crore, per the report.

VCCircle has reached out to MobiKwik on the details of this fundraise and will update this report accordingly.

MobiKwik was set up in August 2009 by Upasana Taku and Bipin Preet Singh. In September this year, the company also elevated senior vice-president Chandan Joshi to co-founder status and CEO of its payments business.

The company operates in segments such as consumer payments, payment gateways and financial services including mutual funds. The consumer payments segment accounts for nearly two-thirds of its revenue.

MobiKwik’s net revenue jumped 134% to Rs 379 crore for 2019-20 from Rs 162 crore the year before, its latest annual report shows. Its earnings loss before interest, taxes, depreciation and amortisation narrowed to Rs 45 crore from Rs 112 crore.

The company said in its annual report that it had begun preparing for an initial public offering, which it is aiming to conduct in 2022.

MobiKwik has raised more than $100 million since inception from investors such as Sequoia Capital India, Bajaj Finance Ltd, American Express and South Africa-based Net1 UEPS Technologies Inc., according to its annual report. Its other investors include Cisco, NDTV, Bennett Coleman and Co. Ltd, GMO Venture Partners and Tree Line Asia.

The company competes in various segments with the likes of Paytm, Google Pay, Amazon Pay, PhonePe, Razorpay, CCAvenue and Billdesk.

Mumbai-listed Hindustan Media Ventures is 74.4% owned by HT Media Ltd, the operator of newspaper brands such as Hindustan Times, according to stock-exchange data. In July, HT Media said it would acquire Mosaic Media Ventures Pvt. Ltd, the operator of VCCircle.com, from News Corp.

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