MUMBAI, June 16: Digital payments provider
Mobikwik is aiming to be profitable next fiscal and is looking
to on-board an investor who will help it go public in the next
three years, a top official has said.
The 2009-incorporated company is planning to report
its first quarterly profit in March, and will be profitable
from a full year perspective from FY21.
“We are looking for an investor who will help the
company go for an initial public offering (IPO) in three
years,” co-founder and chief executive Bipin Preet Singh told
PTI here.
Singh said he is in talks with multiple players but
refused to share more details including to specify whether it
will be a strategic or a financial investor.
Mobikwik already counts Sequoia Capital, Bajaj Finance
and South African firm Net 1 UEPS Technologies among its major
shareholders.
The company, whose competitors include deep pocketed
and aggressive players like the Alibaba-backed Paytm, had
doubled revenue in FY19 to Rs 184.6 crore.
Singh said there is not much of cash burn from the
payment transactions, where it has to give out rewards for
usage, and attributed higher investments delaying
profitability.
It is focusing on leveraging its user base of over 100
million to hawk more tailor-made products like micro-
insurance, loans and investments which are margin accretive.
It sold 4 lakh loans worth Rs 500 crore in FY19, and
aims to more than double it to 1.5 million in FY20, Singh
said.
Currently, Mobikwik sells policies of seven insurance
companies and is targeting to sell 2 million policies across
life, general and health space in FY20, he said, and stressed
that it is not selling policies under any of the flagship
government schemes.
The company is targeting urban customers with deep
pockets and who are digital savvy, he said.
In wealth management, it is starting with selling
liquid funds that can be withdrawn in between as well, with
the idea of giving investors more than a fixed deposit sans
any hassles, he said, adding all the investments happen
through the app.
“We are not interested to be a payments bank or a
shadow bank. We want to be a financial distributor with a
deeper say in our partnerships, Singh said. (PTI)
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