MobiKwik, the latest entrant in the online bus booking industry, now has over 32 million subscribers. The company announced its aim to reach the top of the industry by the end of 2016. The first step in an attempt to do that comes as an option for partial payment for bookings and cash pickups for the same (something similar to COD). The co-founder Upasna Taku said that they are doing 4,000 reservations on a daily basis, and in the past one month, the business has grown 100 percent. This tremendous growth has encouraged them to look at bus bookings as a separate revenue source.
This offer of theirs is one of the lucrative in the stream. Overall the bus booking segment is worth Rs. 20,000 crores in India and online transactions contribute almost 15 percent to this segment. The segment is growing very fast, and much of it is because of the booking through mobile apps.
Besides, the private bus travel market is estimated to be worth Rs. 17,000 crore and is expected to grow by 40% by the end of 2018. The state-run bus travel market is estimated to be at Rs 44,000 crore and is expected to grow by another 20% by 2018.
MobiKwik, is one of India’s largest independent mobile payment network, connecting around 32 million users with over 100,000 retailers. It was founded in 2009 by Bipin Preet Singh and Upasana Taku. The company has received three rounds of funding from Sequoia Capital, AmEx,Tree Line Asia, MediaTek, GMO Payment Gateway and Cisco Investments. This kind of investment has encouraged a good growth rate for the company.
Being one of the leading digital payments platforms for both online and offline merchants, MobiKwik has started powering payments for players like IRCTC, Uber, Big Bazaar, Meru Cabs, OYO Rooms, PVR, Archies, Zomato, WHSmith India, Grofers, BookMyShow, Big Basket, Domino’s, Pizza Hut, Burger King, eBay, ShopClues, Myntra, Jabong, Barista, Food Panda, Pepperfry, Nearbuy, Allen Solly, Louis Phillipe, Van Heusen, GoDaddy and MakeMyTrip.
From having Paytm as its sole largest competitor, MobiKwik has now moved on to going up against Red Bus. Red Bus has been in the market for quite some time and has a significant share. The company has succeeded in establishing a name that is well known. The segment is quite dynamic, and an increase in investment in the industry will sure bring out new stories.