MobiKwik Launches Investment Deposit Product
MobiKwik, a digital payments company, is bolstering its financial services offering by launching an investment deposit product called Xtra for its consumer and merchant partners.
According to reports, the company already has assets under management (AUM) of Rs 101 crore for the product.
Tested over the past month, the product enables users to invest as little as Rs 1,000 and looks to provide interest of up to 12 percent per annum on these deposits, with an option to withdraw the corpus at any time.
The deposits will be invested by a peer-to-peer non-banking financial company (NBFC) partner as loans to MobiKwik customers. MobiKwik has partnered with P2P NBFC LendBox for the offering.
MobiKwik’s Xtra is not a new offering in the fintech industry, with several other firms including Cred and BharatPe foraying into the P2P lending category last year. Last week, Cred said it was investing $10 million in P2P NBFC Liquiloans, which powers its P2P lending product Credit Mint.
Liquiloans is also working with Cred on its credit line product Cred Cash.
Earlier this month, MobiKwik announced its fiscal results for FY22. It reported an 80% increase in revenues to Rs 543.2 crore, while losses increased 15 percent to Rs 128.16 crore from Rs 111.3 crore in FY21.
Tested over the past month, the product enables users to invest as little as Rs 1,000 and looks to provide interest of up to 12 percent per annum on these deposits, with an option to withdraw the corpus at any time
The company has stalled plans for its initial public offering (IPO) amid a broader correction in fintech valuations.
MobiKwik received approval from capital markets regulator, the Securities and Exchange Board of India (Sebi), in October last year to go ahead with its Rs 1,900 crore IPO.
Recently, the Reserve Bank of India (RBI) reportedly rejected MobiKwik's application to operate Zaakpay, its payment gateway service, as a payment aggregator.