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MobiKwik IPO: All You Need to Know

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Published Date: 09 Dec 2024Updated Date: 09 Jan 20256 mins readBy MOFSL

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Introduction

Imagine a world where every financial need, from paying your utility bills to buying your dream gadget on EMI, can be managed seamlessly with a few taps on your smartphone. This is the world MobiKwik envisioned when it started its journey in 2009. Now, as one of India’s leading digital payment platforms and a pioneer in the Buy Now Pay Later (BNPL) space, MobiKwik is ready to take the next big leap with its highly anticipated IPO.

The upcoming MobiKwik IPO offers an exciting opportunity for investors to join the league of investors investing in upcoming and growing industry trends. As digital payments and BNPL are set to redefine India’s financial ecosystem, MobiKwik stands at the forefront of this transformation. Let’s discover how this IPO offers a chance to shape the future of India’s thriving fintech industry.

About MobiKwik

Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik is a home grown fintech player with a diversified business model. It started as a mobile wallet but has since expanded into a full-stack digital payment ecosystem. The company serves over 140 million registered users and three million merchants across India.

MobiKwik's unique selling point lies in its Buy Now Pay Later (BNPL) feature, which has witnessed exponential growth, especially among millennials and Gen Z. Alongside, BNPL, the company offers a wide array of services, including bill payments, insurance, digital gold, and credit card management.

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IPO Details

Here’s a quick snapshot of the upcoming IPO:

Details	Information
IPO Date	11th Dec, 2024 to 13th Dec, 2024
Face Value	₹2/- per share
Price Band	₹265/- to ₹279/- per share
Lot Size	53 Shares
Total Issue Size	20,501,792 shares (aggregating up to ₹572.00 Cr)
Fresh Issue	20,501,792 shares (aggregating up to ₹572.00 Cr)
Offer for Sale	Nil
Listing At	BSE, NSE
Allotment Date	Monday, Dec 16, 2024
Refund Initiation	Tuesday, Dec 17, 2024
Listing Date	Wednesday, Dec 18, 2024

The fresh issue component of the IPO will be utilized to bolster MobiKwik's BNPL portfolio, enhance technology infrastructure, and fuel expansion plans in Tier-2 and Tier-3 cities.

Financial Performance

MobiKwik has demonstrated impressive growth, driven by the rapid adoption of digital payments and its flagship Buy Now Pay Later (BNPL) services. The company had posted a revenue of ₹875 crore in the financial year 2023-24 (FY24), up 62.19% from ₹539.46 crore in FY23. Turning profitable is one of the most crucial turning point for any start-up, and with a net profit of ₹14.08 crore in FY24, MobiKwiik flipped over its loss which stood at ₹83.81 crore in the previous year. Additionally, the company reported a Gross Merchandise Value (GMV) of ₹43,000 crore in FY23, growing at a robust CAGR of 45% over the last three years. The company’s strategic focus on operational efficiency and deeper penetration into smaller towns has played a pivotal role in improving its margins and setting the stage for sustainable growth.

MobiKwik's Business Model

MobiKwik’s greatest strength lies in its diversified business model, which operates across four key segments. Its Digital Payments platform facilitates seamless transactions for bill payments, e-commerce purchases, and peer-to-peer money transfers. The company’s flagship Buy Now Pay Later (BNPL) offering has gained immense popularity, driving user retention and higher ticket sizes. In addition, MobiKwik provides Financial Products, including microloans, insurance, and digital gold, which create additional revenue streams. Lastly, its Merchant Services cater to small and medium businesses (SMBs), offering payment solutions and credit facilities to support their growth. This comprehensive approach positions MobiKwik as a robust player in the fintech ecosystem.

Why Invest in MobiKwik IPO?

Massive Market Opportunity: The Indian fintech market is projected to reach $200 billion by 2030, with digital payments and BNPL leading the charge.
First-Mover Advantage in BNPL: MobiKwik’s early entry into the BNPL space gives it a significant edge in a fast-growing segment.
Wide Customer Base: Over 140 million users and 3 million merchants provide a strong foundation for future growth.
Robust Growth Trajectory: The company has consistently delivered growth across key metrics like GMV, revenue, and user base.
Government Push for Digital India: Policies like UPI 2.0 and financial inclusion initiatives provide tailwinds for digital payment adoption.

Analysing IPO opportunity

Considering the pros and cons, MobiKwik’s IPO presents a compelling opportunity to invest in one of India’s rapidly expanding fintech platforms. With the growing nationwide trend of investing in financial-technology ventures, MobiKwik emerges as a leading competitor and an ideal gateway for new-age investors to explore opportunities in cutting-edge tech companies exploring business models outside traditional pillars suitable and adaptable with the changing lifestyle and demand of the audience.

However, as with any IPO, it’s essential to evaluate your risk appetite and financial goals before investing. The MobiKwik IPO could be your gateway to riding the fintech growth wave in India, making it an exciting prospect for both retail and institutional investors.

Watch this space for more information on the IPO subscription, listing performance and more!