An important milestone for the fintech startup situated in Gurugram will be reached next week when One MobiKwik Systems Ltd.’s eagerly awaited Initial Public Offering (IPO) opens for subscriptions. Here is all the information you require regarding the offering, the company’s development, and its future goals.
Credits: NDTV Profit
IPO Specifics: Cost, Schedule, and Important Points
Through a new share offering priced between ₹265 and ₹279 per share, MobiKwik’s IPO seeks to raise ₹572 crore. The absence of an offer-for-sale (OFS) component, in contrast to many initial public offerings (IPOs), highlights the company’s emphasis on using all revenues for expansion and growth.
- Anchor Investment Round: December 10, 2024
- Bidding Period: December 11-13, 2024
- Stock Exchange Listing: NSE and BSE
- Lot Size: Minimum of 53 shares, with additional bids in multiples of 53
- Two leading investment banks, SBI Capital Markets Ltd. and DAM Capital Advisors Ltd., are managing the issue.
Utilization of IPO Proceeds
MobiKwik has strategically allocated the funds to accelerate its growth in key areas:
- Financial Services Growth: ₹150 crore will be directed towards expanding the company’s digital credit, insurance, and investment offerings.
- Payment Services Expansion: ₹135 crore is earmarked for enhancing its payment solutions.
- Technology Investments: ₹107 crore will fuel advancements in data, machine learning, artificial intelligence, and other tech developments.
- Payment Devices Business: ₹70.28 crore will go towards capital expenditure for payment device upgrades.
- General Corporate Purposes: Remaining funds will strengthen operational capacities.
This robust strategy underscores MobiKwik’s commitment to leveraging cutting-edge technology and capturing market share in the dynamic fintech ecosystem.
Strong Financial Performance Signals Growth Potential
MobiKwik’s financial turnaround is one of the standout features of its IPO narrative. For the fiscal year ending March 2024, the company reported a net profit of ₹14.1 crore, a stark improvement from the ₹83.8 crore loss in FY23.
Other key metrics:
- Revenue Growth: ₹875 crore in FY24, up from ₹540 crore in FY23.
- EBITDA: Profit of ₹37.2 crore in FY24, compared to a loss of ₹55.9 crore in FY23.
This sharp recovery highlights MobiKwik’s ability to execute its business plans effectively, making it a compelling prospect for investors.
Ambitious Market Goals and UPI Focus
Co-founder Bipin Preet Singh revealed the company’s aspiration to capture 10% market share in the Unified Payments Interface (UPI) ecosystem, a space dominated by heavyweights like Google Pay and PhonePe.
To achieve this, MobiKwik plans to enhance its flagship app, which offers an integrated suite of payment and financial products, including:
Digital Credit Solutions: Simplified access to small-ticket loans.
Insurance and Investments: Expanding financial literacy and product accessibility.
Seamless Payments: Across online and offline channels.
What Sets MobiKwik Apart?
Founded by Bipin Preet Singh and Upasana Taku, MobiKwik has carved a niche in the competitive fintech landscape with its unique positioning as a one-stop shop for payments and financial products.
Its focus on leveraging technology and AI-driven insights to offer personalized solutions has helped it build a strong consumer base and grow consistently despite intense competition. With UPI payments surging and India’s fintech adoption at an all-time high, MobiKwik’s growth story appears to align perfectly with market trends.
Credits: Global Prime News
Challenges and Investor Considerations
Despite its encouraging figures, MobiKwik competes in a highly regulated industry. The UPI market is dominated by rivals like Paytm, PhonePe, and Google Pay; it will be essential to continue to remain profitable while growing. Together with the company’s financial recovery and prospects for future expansion, investors should consider these aspects.
Concluding Remarks
Thanks to MobiKwik’s maiden public offering (IPO), potential investors have the opportunity to engage in a company that is well-positioned for growth, backed by solid financials and a clear roadmap. Though its success thus far indicates that it can, it is still unclear if the fintech will be able to keep up with the competitive market.
