One billion phones will soon have access to financial services, according to the announcement of the launch of Xtra by India’s top fintech company MobiKwik. With no lock-in, daily interest credit of up to 12% per annum, and a low initial deposit requirement of just Rs 1,000, Xtra is a new approach to investing designed to meet the demands of young investors. The Xtra product offered through the user-friendly MobiKwik mobile app aims to develop a new investment pattern among the savvy investors.
“90% of Indians do not have the right financial products or a way to maximize their savings. Xtra has been conceived for every Indian to save more and give them the best possible interest rate. Xtra is extremely flexible, which enables users to invest and earn for a short period of time or for an extended time period. Let Reema invest at the beginning of the month; Now his money is earning daily interest. Even if she withdraws her deposit on the 16th of the month to meet monthly expenses, now she has earned 0.5% on her deposits in those 15 days while maximizing her savings!” Mukul Saxena, CEO, Financial Services, MobiKwik said.
MobiKwik mentions on its website that “Xtra is an investment that offers you an opportunity to earn up to 12% p.a. by lending directly to creditworthy borrowers. This is done through an RBI-regulated peer-to-peer investment platform, Lendbox (Transectry Technologies Pvt Ltd).”
Any Indian (resident or non-resident) above 18 years of age or having PAN card and Indian bank account is eligible to invest with Lendbox in full compliance. NRO bank account is another way for NRIs to invest in extras. Start investing with as little as Rs. 1000 and as much as Rs. 10 lakhs. Your investment interest income is not reinvested and therefore your account will be continuously updated with income, which you can withdraw at any time without any charges.
“Hundreds of data points of income and expenditure behavior are assessed before selecting the borrowers to whom the money will be lent. The investors’ fund will be divided into pieces as small as Rs. Distributed between 100 and lakhs of borrowers. This minimizes risk and diversifies investments,” MobiKwik noted on its website.
Lendbox, a P2P registered NBFC governed by RBI, and were jointly responsible for the launch of Xtra Xtra. With Xtra, MobiKwik seeks to democratize and digitize investment and savings in a manner that is technology-friendly and delivers unmatched returns to empower the Next Billion Indians. The fintech giant says flexible and alternative products like Xtra can help Indians achieve financial independence and earn very high returns on their savings. Xtra is another first in a long list of industry-first products and features.
With its 127 million customers and 3.7 million merchants, MobiKwik is aiming to become a full-service neobank by offering payment, credit and investment products. This will be an innovation in the fintech space, given that it has achieved profitability over the past two quarters. With an 80% year-on-year growth in revenue, the firm ended the fiscal year 2022 with Rs 5.4 billion, outperforming all its competitors.
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