MobiKwik launches flexible investment product – Xtra with 12% returns

“90% Indians do not have access to the right financial products or the know-how to maximize their savings. Xtra has been envisioned to further savings for every Indian and give them the best possible interest rate. Xtra is super flexible, enabling users to invest and earn for short bursts or extended time periods. Let’s say Reema invested at the beginning of the month; now her money is earning daily interest. Even if she withdraws her deposit to meet monthly expenses on the 16th of the month, she has now earned 0.5% on her deposit in those 15 days maximizing her savings!” said Mukul Saxena, CEO, Financial Services, MobiKwik.

MobiKwik has mentioned on its website that “Xtra is an investment that offers you the opportunity to earn upto 12% p.a. by lending directly to creditworthy borrowers. This is done via an RBI-regulated peer to peer investing platform, Lendbox (Transactree Technologies Pvt Ltd).”

Any Indian over the age of 18 (resident or non-resident) or company having a PAN card and Indian bank account in full compliance is eligible to invest with Lendbox. The NRO bank account is another way for NRIs to invest in Xtra. Start investing with as little as Rs. 1000 and as much as Rs. 10 lakhs. Your investments’ interest income is not reinvested and hence your account will be continuously updated with earnings, which you can withdraw at any time without paying any charges.

“Hundreds of data points of income and expense behavior are assessed before selecting borrowers to whom money will be lent. Investors’ funds will be split into chunks as small as Rs. 100 and distributed between lakhs of borrowers. This mitigates risk and diversifies investments,” mentioned MobiKwik on its website.

Lendbox, a P2P registered NBFC governed by the RBI, and Xtra were jointly liable for the launch of Xtra. With Xtra, MobiKwik seeks to democratise and digitise investments and savings in a way that is tech-friendly and offers unmatched returns in order to empower the Next Billion Indians. The fintech behemoth says that flexible and alternative products such as Xtra can help Indians achieve financial independence and earn much higher 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 would be a novelty in the fintech sector, given that it has achieved profitability over the past two quarters. With an 80% YoY growth in revenue, the firm ended the fiscal year 2022 with INR 5.4 billion, outpacing all of its competitors.