Bajaj Finance Ltd. on Wednesday said it will buy 11 percent stake in mobile wallet company MobiKwik for about Rs 225 crore.
The non-banking financial company has entered into a subscription agreement with One MobiKwik Systems – the company that owns MobiKwik – under which it will acquire 10 equity shares and 2.71 lakh compulsory convertible preference shares (CCPS), Bajaj Finance said in an exchange filing.
"Post conversion of CCPS, the company would hold approximately 10.83 percent equity in MobiKwik on a fully diluted basis", the filing added.
The conclusion of the transaction is subject to fulfilment of certain conditions in due course, according to the Bajaj Finance. The company has also entered into a shareholders agreement which would become effective on conclusion of the above investment transaction.
Earlier this year, MobiKwik had said it is looking at raising funding for its expansion plans as it looked to compete with larger rival Paytm that is backed by deep- pocketed investors like Alibaba and SoftBank.
Mobikwik has so far raised over $85 million in funding from investors like South Africa's payments major Net1, Sequoia Capital, American Express, Tree Line Asia and Cisco Investments.
Also Read: BlackRock Said Poised to Fund Mobikwik Valuing It at $1 Billion
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