Bajaj Finance has acquired 11% stake in eWallet company Mobikwik for about Rs. 225 crore. In a BSE filing, Bajaj Finance said it has entered into a subscription agreement with One MobiKwik Systems.
Under the agreement, it will acquire 10 equity shares and 271,050 compulsory convertible preference shares (CCPS) of Mobikwik. “Post conversion of CCPS, the company would hold approximately 10.83 per cent of equity in MobiKwik on a fully diluted basis.
Recently, Mobikwik’s rival and Snapdeal—owned Freecharge was sold to Axis Bank for Rs. 385 crore.
MobiKwik was looking for funding for its expansion plans as it looked to compete with larger rival Paytm that is backed by deep— pocketed investors like Alibaba and SoftBank.
Mobikwik has so far raised over USD 85 million in funding from investors like South Africa’s payments major Net1, Sequoia Capital, American Express, Tree Line Asia and Cisco Investments.