This funding is going to be crucial for ensuring that Mobikwik sustains the cut-throat competition coming from the heavily-funded rivals in the market.
Online payments firm Mobikwik is in talks to raise at least USD 100-150 million in a fresh round of funding, according to two people privy to the development.
The round is likely to see participation from Dubai-based Abraaj Group, said one of the persons quoted above. The due diligence is being done, the person added.
It wasn't immediately clear if Mobikwik's existing investors will also participate in the round.
Unlike arch rival Paytm, which last year raised USD 1.4 billion from SoftBank, and Flipkart which has already invested USD 250 million out of the USD 500 million it promised in PhonePe, Mobikwik has so far raised just USD 115 million.
It counts Bajaj Finance, Net1 and Sequoia Capital among its investors.
This funding is going to be crucial for ensuring that Mobikwik sustains the cut throat competition coming from the heavily-funded rivals in the market.
Mobikwik declined to comment. Abraaj Group Managing Director Rishi Maheshwari did not respond to email and message.
However, in a conversation with Moneycontrol earlier this month, Upasana Taku, co-founder of Mobikwik had said that the company has been raising money almost every year and may look at raising at least USD 100 million. She, however, did not share a definite timeline.
The company has forayed into multiple services beyond payments such as insurance and remittances. These segments are expected to allow Mobikwik earn a larger commission rate to the tune of 3-5 percent against 1-1.5 percent, it earns from the payments merchants currently.
Mobikwik targets to earn 30-40 percent of its revenue from this segment by the end of the financial year. It also plans to invest around USD 40 million to grow these segments over the next 1-1.5 years.
Mobikwik claims to have tripled its transaction and gross merchandise value in the last one year. It targets a four-fold growth this financial year.
In the next three years, the target is to hit USD 20 billion in terms of transactions.
The company reported a revenue of Rs 40 crore and loss of Rs 114 crore during the financial year 2016. The revenue barely inched up to Rs 44 crore even as the company reported a loss of Rs 132 crore for the financial year 2017.
Mobikwik recently saw exit of a bunch of senior executives, including CBO Vineet Singh, head of retail business Vivek Sinha and payment gateway head Rukhaiya Rangawala.Abraaj Group has also invested in companies such as Big Basket in India.