Mobikwik takes dig at Paytm; demands cap on foreign investment

Taking a jibe at rival e-wallet Paytm, Mobikwik's CEO Bipin Preet Singh has said that foreign investors' stake in online payments companies should be capped to protect consumer data, The Times of India reported today.

"When a strategic investor, not a financial investor, is putting so much money and gains majority control it's likely the data is being routed out of the country. The heavy flow of capital in these companies is being used to buy data on the back of majority control in such firms. There should be a limit on how much such foreign entities are allowed to hold in digital payments companies similar to the banking sector in India," he told TOI.

His comments can be seen as a jibe at its rival Paytm in which Chinese e-commerce major Alibaba group holds 40 percent stake.

Interestingly, many global investors such as American Express, Sequoia Capital, Cisco Investments and others hold stake in Mobikwik too.

As the country deals with severe cash crunch post demonetisation drive by Modi government, e-wallet firms are using this phase to maximise their user base by offering more discounts and cashbacks to the consumer.

Recently, Flipkart co-founder Sachin Bansal and Ola founder Bhavish Aggarwal also voiced their concerns on capital dumping by their foreign rivals Amazon and Uber.Also Read: Why Flipkart and Ola's rants against MNCs are unjustified