Digital wallet company MobiKwik, owned by Gurugram-based One Mobikwik Systems, will now sell insurance products on its platform in partnership with Edelweiss Tokio Life Insurance Company.
This adds to the fintech’s wealth management product profile, which includes small loans and mutual fund investments.
“With the increased adoption of mobile technologies and Internet penetration, leading fintech players like MobiKwik have become strategically crucial in improving reach and access of insurance products to the end customer,” said Sumit Rai, managing director and chief executive officer, Edelweiss Tokio Life in a statement.
Edelweiss Tokio Life Insurance will be offering insurance of Rs 1 lakh, Rs 3 lakh and Rs 5 lakh via its platform with annual premium as low as Rs 148, MobiKwik said in a statement today.
Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik’s businesses include retail payments through wallet services, fintech products and business-to-business payments.
“The insurance penetration in India is only 3.7% of GDP and there is a huge potential ready to be tapped, more so with the exponential increase in the adoption of smartphones and penetration of the Internet. This presents a vast opportunity for digital insurance to the mass market which has been ignored by banks, distributors and even online companies owing to high distribution cost,” Taku in the statement.
In July, MobiKwik raised $1.27 million (Rs. 8.74 crore then) in a fresh funding round from broadcast major NDTV and venture debt fund Trifecta capital.
In May, MobiKwik reported that gross revenue increased 116% to Rs 184.6 crore for the financial year 2018-19, up from Rs 85.6 crore the previous year.