Johannesburg - Dual-listed Net 1, an alternate payment solution service provider, says it has inked a subscription deal with India-based MobiKwik.
In a statement issued on Friday, the group said MobiKwik is India's largest independent mobile payments network, with more than 32 million users and 100 000 retailers.Its current shareholders include Sequoia Capital, Tree Line Asia, American Express, Cisco Investments, GMO Payment Gateway and MediaTek, as well as Bipin Preet Singh and Upasana Taku, the founders and executive officers.
Net 1 says, as part of the strategic partnership, it will invest up to $40 million - about R566 million- in MobiKwik over the next two years. In addition, Net1’s Virtual Card technology will be integrated across all MobiKwik wallets to provide ubiquity across all merchants in India.
CEO Serge Belamant says the investment “provides us with meaningful participation in one of the largest and fastest growing digital payment markets globally”.
“We believe that this investment will accelerate our ability to build scale in India.”
In the next three years, MobiKwik wants to have 150 million users and 500 000 merchants.
The news came after Net 1 earlier on Friday said revenue for the year, while up quarter-on-quarter, was down 6 percent to $590 million. In rand terms, it would have gained 19 percent.
Fundamental net incomes was down 15 percent in dollar terms and up 7 percent in constant currency to $29.1 million, with fundamental earnings per share down 17 percent at 1.92 USc.
IOL