Mobikwik looks to expand its merchant business

Mobikwik is looking to expand its merchant business, both on the lending and liabilities side, in the coming year, said Co-Founder and COO Upasana Taku. It has a network of 4 million merchants comprising e-commerce players, physical retailers, mom and pop stores and billers.

“We’ve started merchant loan offerings, and are looking forward to scaling that up this year,” Taku told businessline, adding that this will include working capital funding and credit against receivables, among other products.

“We also want to bring investment products and other offerings for small businesses. Right now, we only offer payments on the merchant application and some insurance products,” she said.

Of its user base of 135 million customers and 4 million merchants, Mobikwik offers credit to 4 million customers largely comprising small ticket credit for daily life usage such as shopping, pay later and EMI products instead of open-ended loans like some of its peers.

The platform has an AUM of around ₹600 crore, with the average transaction size at around ₹20,000. Mobikwik has also been looking to grow the share of the high-margin financial services distribution business, which currently accounts for 45 per cent of revenue.