MobiKwik to spend Rs 80 crore on marketing, promotion in 6 months
Company is also focusing on bringing more people onboard from tier I, II and III regions.
New Delhi: Digital payments firm MobiKwik plans to invest Rs 60-80 crore on marketing and promotions in the next six months as it looks to drive transaction volumes on its platform and get more consumers onboard.
MobiKwik, which competes with the likes of Alibaba-backed Paytm and Flipkart's PhonePe, also expects to see 2.5X growth in daily transactions on its platform.
"We have seen a phenomenal growth, especially during the ongoing festive season. We have a lot of activities going on that will continue till January. In the next six months, we are looking at a ATL-BTL (marketing and promotions) spend of Rs 60-80 crore," MobiKwik Vice President Marketing Akash Gupta told PTI.
Post demonetisation, in November last year, there has been a massive growth in digital transaction volumes in India, including credit/debit cards, mobile banking/m-wallets and UPI. Mobile wallet companies like Paytm and MobiKwik have also seen manifold growth in transactions as well as new users coming on board.
"We are currently seeing three million daily transactions on our platform. With the initiatives and benefits being offered, we expect this number to grow to 7.5 million by the end of our festive promotions," Gupta said.
The company is also focusing on bringing more people onboard from tier I, II and III regions.
"A bulk of our customers are currently from the top 8 cities. We are trying to get consumers outside these cities to transact digitally and use our platform to do so," he said.
Mobikwik has 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.
In August this year, Bajaj Finance had said it will pick up nearly 11 per cent stake in MobiKwik for about Rs 225 crore.