MobiKwik, a provider of digital payments, is expanding the range of financial services it provides to its consumer and merchant clients with the introduction of the investment deposit product dubbed Xtra.
According to reports, cofounder Upasana Taku stated that the business already has Rs 101 crore in assets under management (AUM) for the product.
Users may spend as little as Rs 1,000 on the product, which has been tested over the last month, and it aims to offer interest on these deposits of up to 12% annually with the ability to withdraw the corpus at any moment.
A peer-to-peer non-banking financial business (NBFC) partner will invest the deposits as loans to MobiKwik users. For the product, MobiKwik has teamed with P2P NBFC LendBox.
MobiKwik’s Xtra is not a brand-new service in the FinTech sector; several other companies entered the P2P lending market last year, including Cred and BharatPe. Cred previously announced investing $10 million in P2P NBFC Liquiloans, the company that underpins its P2P lending platform Credit Mint.
On its credit line offering Cred Cash, Liquiloans and Cred are also collaborating.
“Most of the P2P investment products from other fintechs are focused on select segments of consumers. We wanted a large base to benefit from the returns. Also, we are offering up to 12% returns, higher than certain other FinTech firms, with a low entry investment barrier of Rs 1,000. We have launched Xtra keeping in mind that traditional financial instruments such as fixed deposits offer interest as high as 6% at present,” said Taku.
She continued by saying that the business is optimistic about the profits since Lendbox would use the deposits to provide loans to its client base on MobiKwik. MobiKwik now provides its members with fast loans and buy-now-pay-later options.