Mobile payments firm MobiKwik on June 10 reported a five-fold year-on-year (YoY) growth to Rs 362 crore in the gross transaction value of the IMPS (Immediate Payment Service) fund transfer business, with 6.7 lakh transactions during May. It is targeting to close FY20 with Rs 10,000 crore worth of transfers.
Quoting the data from the National Payments Corporation of India (NPCI), MobiKwik claimed market leadership with 26 percent share of the entire IMPS transfer market in India, which includes total funds transferred from its wallet to the bank. The average value per transaction was Rs 5,363.
The use case was driven by bill payments, merchant payments, funds transfer etc. The wallet to bank feature allows users to instantly transfer money to any bank account used by small merchants, who accept payments via MobiKwik as well as by users that have availed of digital loans in their wallets.
Most industry players charge around 2-3 percent of the total transaction value as commission. MobiKwik did not immediately comment on the commission it charges from its customers.
MobiKwik, which has over 107 million users and three million merchants, claims to be offering lending, insurance, investments and payment gateway besides the wallet service. Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik has raised four rounds of funding of close to $120 million from investors including Sequoia Capital, American Express and Net1.
The company recently reported a 100 percent increase in revenue for FY19 as it targets to turn operationally profitable in FY20. Its FY19 revenue stood at Rs 184.6 crore as against Rs 85.6 crore in FY18.
"We are choosing our own differentiated strategy, which is not spray and prey. We do not want to acquire every user or every merchant. We are looking at more targeted acquisitions and therefore growing the platform amazingly well," Taku told Moneycontrol.
Last week, rival Paytm said it witnessed 5.5 billion transactions on its platform across all segments in FY19. It, however, did not specify the number of IMPS fund transfers specifically.
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