Shardul Amarchand Mangaldas advises one Mobikwik Systems on investment by Bajaj Finance

Shardul Amarchand Mangaldas and Co. (SAM & Co.) advised One Mobikwik Systems Private Limited (Mobikwik) in relation to Rs. 225 crore equity investment in Mobikwik by Bajaj Finance Limited (Bajaj Finance).

Mobikwik is the second largest mobile wallet payments company in India with over 55 million users and more than 1.5 million merchants.

The Private Equity Group of SAM & Co's General Corporate Practice advised on structuring the transaction from an Indian regulatory perspective; drafting transaction documents and assisted in closing and post-closing actions. The transaction team was led by Amit Khansaheb, Partner; and included Rishi Jain, Partner; Tejas Patel, Senior Associate and Vidushi Gupta, Associate.

As a part of the transaction, Bajaj Finance will acquire 10.83 percent stake in Mobikwik for Rs. 225 crore and a commercial arrangement shall be entered into by the two entities to offer a co-branded mobile wallet to the customers of Bajaj Finance and Mobikwik.

The strategic partnership with Bajaj Finance, which is a leading player in the lending products market, marks Mobikwik's entrance into the credit lending space.

The parties involved in the transaction include One Mobikwik Systems Private Limited (the Company); Bipin Preet Singh and Upasana Rupkrishan Taku (the Promoters); Bajaj Finance Limited (the Incoming Investor); American Express Travel Related Services Company, Inc., Net1 Applied Technologies Netherlands B.V., Sequoia Capital India Investments IV, Sequoia Capital India Investment Holdings III, Tree Line Asia Master Fund (Singapore) Pte. Limited, GMO Global Payment Fund Investment Partnership, Cloud Ranger Limited and Cisco Systems (USA) Pte. Ltd. (the Existing Investors).

Other advisors to the transaction were AZB and Partners (represented Treeline and Cisco); Themis Associates (represented Sequoia); Chitale Law Associates (represented Bajaj Finance Limited); and Cliff Dekker Hofmeyer Inc., South Africa and Desai and Diwanji (represented Net1).