MobiKwik's Mission To Become The Go-to Digital Banking Platform For Bharat: Insights From The Co-Founder & COO, Upasana Taku
MobiKwik began as a digital payment wallets but has diversified its offerings to become a go-to digital banking platform. Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik aims to serve traditionally underserved markets and offer affordable digital credit, investments, payments, and more through a single platform.
In this interview with MobiKwik's Co-founder & COO Upasana Taku, we discuss the journey of MobiKwik, how the platform stands apart from its competitors, plans for expansion and investment, the present market scenario and how MobiKwik is well-positioned to take advantage of the growing demand for digital financial services and new-age investment products in India.
Can you explain in brief how you started MobiKwik and how the journey has been so far?
MobiKwik was started by Bipin and me with a vision to simplify digital payments for Indian consumers.
Bipin had a vision for a startup that would provide mobile recharge payments via a digital wallet, which he believed was a primary use case that must be digitized. Meanwhile, I had solid experience handling Payments for 3 years at PayPal. In June 2009, Bipin quit his job and went full-time while I stayed in the loop. By February 2010, I had embraced MobiKwik as my baby and hit the ground running. We started with humble beginnings, using only two laptops on my dining table as our office. With a combined capital of 20-40 lakhs, which we had saved over 6-7 years of work experience, we had very little to start with. Moreover, initially, we had no support or encouragement from our families to begin our entrepreneurial journey. But, slowly and steadily, people joined us who shared our vision and worked tirelessly to make MobiKwik India’s leading and most innovative fintech, and now we are working towards creating a digital banking platform for the underserved masses of Bharat.
Our journey of growth and innovation has helped us stay ahead of the curve in a rapidly evolving financial services landscape. Over the years, MobiKwik has diversified its offerings and has become a go-to platform for a variety of financial services, including payments, investments, insurance, digital credit and more. We have expanded our reach to over 19103 pin codes out of 19253 in India, covering 99.2% of India's pin codes.
There are multiple players operating in the same domain. In this highly competitive market, how does MobiKwik stand apart?
MobiKwik's mission is to build a world-class digital banking platform for Bharat. What began as a digital payment wallet in 2009 has now expanded its suite of financial products for consumers and merchants to include digital credit and investments.
With credit card penetration in India at an abysmal 3.5%, we launched digital credit in 2018 to address the credit needs of a large and growing base of digitally savvy users. Through digital credit, they now have access to financial resources that were once out of reach, as they remained underserved by traditional financial institutions for their lack of creditworthiness. At MobiKwik, 80% of our users hail from small towns in Tier 3 to 6 cities and are either New to Credit (NTC) or thin file. Moreover, over half of our users are between 18 and 30 years. These groups often have limited access to formal credit, and we aim to give them their first experience with digital credit.
In 2022, we launched a futuristic & flexible alternative investment product - Xtra, paving our way to bring financial services to a billion phones. With zero lock-ins, interest credited daily, at 12% per annum, and a minimum deposit of just INR 1000 - Xtra is a fresh take on Investments designed to suit the investment needs of millennials and Gen Z. Available on the MobiKwik mobile app, the Xtra product aims to cultivate a new investment pattern among digitally savvy Young Indians. Xtra is another first in a long list of industry-first products and features on the anvil by MobiKwik.
Our strong focus on financial inclusion and commitment to serving traditionally underserved markets, such as Tier 2, 3 and 4 cities, rural areas, and lower-income brackets, sets us apart from our peers. Our focus on offering affordable digital credit, investments, payments and more through a single platform, with a seamless user experience, has helped us become a one-stop digital banking platform for our users.
The pandemic has introduced numerous changes in the FinTech sector; how do you feel this has impacted the consumer sentiments in your domain?
Since the pandemic, we have observed a considerable increase in the adoption of our services, particularly in Tier 2 and 3 cities and rural areas, where the need for digital financial services has increased. We have also seen a surge in demand for our digital credit products as consumers look for affordable and accessible credit options.
Any plans to raise new funds?
We are always evaluating various options to support our growth plans. However, we cannot comment on any specific fundraising plans at this point.
Can you share plans regarding your expansion in the next 1 year?
We plan to continue expanding our product offerings and further strengthen our presence in Tier 2, 3 & 4 cities and rural areas. Our goal is to deepen our engagement with our existing customers and expand our reach to new users. As a digital banking platform, we also plan to invest in technology and innovation to enhance our user experience and introduce new financial products and services to cater to the evolving needs of our customers.
We also intend to broaden our range of services for merchants by providing more lending and liabilities solutions. We also plan to introduce investment products and other offerings tailored for small businesses.
Elaborate on the present market scenario. What kind of business opportunities do you see in this segment?
The present market scenario is quite promising, with a growing demand for digital financial services and new-age investment products in India. We see significant business opportunities in Tier 2 and 3 cities and rural areas, where there is a significant untapped market for digital financial services. We also see an opportunity to provide customized and affordable financial products and services to underserved segments of the population, such as GenZ, small and medium enterprises and the self-employed.
Any new trend you see in the segment in 2023?
We are seeing digital credit services experiencing rapid growth, not just in the B2C payments space but also in B2B. Another trend is the increasing use of AI and ML-powered technologies to enhance user experience and personalize financial products and services. Digital credit products, especially among underserved segments of the population, are expected to see increased adoption as well.
Share some data around the numbers so far, revenues, cities tapped, IPO , etc.
We have around 140 million Registered Users, 40 million credit pre-approved users and 4 million merchant partners.
MobiKwik's digital payment services have been used in 19103 pin codes out of 19253 in India, covering 99.2% of India's pin codes. The majority of MobiKwik's user base is located in Tier 2 and 3 cities.
With a strong performance in FY23 we are geared for a 2X growth in the next two years from the current INR 560 crores to an estimated INR 1000 crores in FY 24.
MobiKwik's products and services cater to a total addressable market that is expected to reach $2.1 trillion by 2030, with a CAGR of 18% from 2022.
Any other relevant information you would like to add.
At MobiKwik, we are committed to our mission of democratizing digital financial services in India and expanding access to financial inclusion for all. Our focus on innovation, technology, and customer-centric solutions has helped us establish ourselves as a go-to digital banking platform for the underserved masses overlooked by traditional systems. With the Indian digital economy poised for significant growth in the coming years, we are excited about the opportunities ahead and are committed to playing a leading role in this transformation.
