Sequoia Capital-backed digital payments platform Mobikwik aims to disburse 1.2 million loans worth Rs 1,500 crore in the current financial year, as part of a big push for its credit business.
Credit-led wallet payments will be the core area of focus for the company going ahead, Mobikwik CEO Bipin Preet Singh told TechCircle.
Singh also denied media reports about a potential sale of its payment gateway service Zaakpay to Naspers backed fintech group PayU.
“Zaakpay is not core business but a key asset and allows us to operate with a large degree of confidence. We will continue to significantly invest in terms of technology and product features. We will focus on serving large enterprises through this,” he said.
He also that Mobikwik has built its own customer scoring mechanism, Mobiscore, for real time data on app usage behaviour as well as financial health details. Loans disbursed in first half of FY20 grew 3X to Rs 459 crore, he added.
One Mobikwik, the holding company, had set up Zaakpay in 2012 as a layer on top of its wallet based customer to merchant payments. Apart from venture capital firm Sequoia, the Gurugram-based company is backed by South Africa’s Net1 UEPS Technology, Japan’s GMO Capital, and Bajaj Finance.
Singh further said that travel was a growing segment with the government-owned IRCTC using its platform along with ride hailing major Uber. “We will focus on gaming, and ecommerce continues to grow with companies like Dailyninja, Grofers and Zomato using the gateway,” he said.
The company stated that the payment gateway reported an EBITDA margin of Rs 1.9 crore for the second quarter of FY 2020 as compared to losses of Rs 2.3 crore in the corresponding quarter last year.
In a previous interview, co-founder Upasna Taku told TechCircle the company planned on growing revenues from its payment subsidiary business through merchant subscription fee for add-on services
Mobikwik had launched wealth management products through the acquisition of Clearfunds in October 2018 and insurance products on its wallet in November last year to monetise its existing user base on the wallet. However the wallet business continues to be the chief contributor to the company’s revenues, with the addition of credit, followed by insurance product and wealth management.
According to a statement shared by Mobikwik, the company claimed to be EBITDA positive in August 2019. Mobikwik competes with Alibaba backed Paytm across verticals and Walmart backed PhonePe.