New Delhi:
Bajaj Finance on Wednesday said it will pick up nearly 11 per cent stake in mobile wallet company Mobikwik for about Rs 225 crore. In a BSE filing, Bajaj Finance said it has entered into a subscription agreement with One MobiKwik Systems.
Under the agreement, it will acquire 10 equity shares and 271,050 compulsory convertible preference shares (CCPS) of Mobikwik. "Post conversion of CCPS, the company would hold approximately 10.83 per cent of equity in MobiKwik on a fully diluted basis," it added.
The value of the transaction envisaged is about Rs 225 crore, it added. The company said the conclusion of the transaction is subject to fulfilment of certain conditions in due course.
The company has also entered into a shareholders agreement which would become effective on conclusion of the above investment transaction, the filing further noted.
Last week, Mobikwik's rival and Snapdeal-owned Freecharge was sold to Axis Bank for Rs 385 crore. 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 USD 85 million in funding from investors like South Africa's payments major Net1, Sequoia Capital, American Express, Tree Line Asia and Cisco Investments.
