After raising ₹225 crore from Bajaj Finserv, MobiKwik is now taking its partnership to the next level. The platform is going to introduce a lending feature, with the help of Bajaj Finserv.
As per the report, MobiKwik is building an application platform which will seamlessly deliver credit from Bajaj Finance to pre-approved e-wallet holders. Users can then purchase products that can be repaid in equated monthly instalments (EMIs).
The application is said to be the common interface for both the partners. Apart from Bajaj Finance’s EMI card, it will also have all of the functionality of MobiKwik’s current apps functionality, including access to its merchant network.
Commenting on this, Bipin Preet Singh, founder and CEO, Mobikwik, said,
In the first phase we have added an EMI card. This is the first app which combines a debit instrument with a closed loop credit instrument — the EMI card.
We will build long-term capability which allows customers make payments, avail personal loans or buy extended warranties. Another advantage would be that the app will show the customers nearby stores which are offering vendor financing schemes. We are projecting that 20-30% of our revenue will come from this partnership.
To get the ball rolling, MobiKwik will now engage in a process of doing credit appraisal of its 65 million users for pre-approval. The company will also provide technical support to Bajaj Finserv for its foray into fin-tech lending.
With this partnership coming in place, all the existing customers of Bajaj Finserv will get migrated to this app. Bipin Singh says that the physical card will go away and will be replaced with the new app.