Cisco Systems, Inc. (NASDAQ:CSCO) has been putting its resources to break into the internet of things. The company recently made an investment, in this regard, in MobiKwik. The investment is worth $25 million and comprises of two more partners, namely American Express and Tree Line. MobiKwik is an Indian mobile e-wallet enterprise. The move is being viewed as an attempt to raise the company’s portfolio in the mobile payments sector.
This was the second round of fundraising conducted by MobiKwik, headed by Singapore based hedge fund Tree Line Asia. The series A round had been able to raise a poor $5 million, but following the success in series B round, the company aims to gain a further $100 million by series C. MobiKwik announced that it would be using these funds for its brand building, data analytics technologies and building its network of merchant and users.
Apart from the investment, MobiKwik also gained access to networking technology made by Cisco. Additionally, the interest of American Express would further help the company improve its payment methods, with experts on its side. The founder and CEO of MobiKwik, Bipin Preet Singh, stated that the investment helps his company in many ways. He highlighted that the experience of the two companies in financial transactions, building user profiles and innovative technologies, will help MobiKwik become the prime payment method in India.
Mr. Bipin, also announced plans to making MobiKwik widely accepted, neutral and interoperable payment solution. The company wants to move users from cash to digital payments. He also outlined that this is to be done in such a way that all kinds of financial needs can be met through this single solution. MobiKwik makes use of the growing popularity of mobile based systems, one which American Express supports. This gives AE the chance to be indirectly involved in a mobile payment solution and see the outcome.
Cisco Systems, Inc. (NASDAQ:CSCO) closed at $28.83 after losing 0.76% on April 30. The company has 5.10 billion shares being traded in the market, with a 52-week range of $22.43-$30.31.