IPO listed on 18 Dec'24
One Mobikwik Systems Ltd
Minimum Investment
₹ 14,787 / 53 shares
Grey market premium
₹ 160 (57% premium)
Issue price
₹ 279
Listing price
₹ 440
Listing gains
161 (58%)
Listing on
Dec 18, 2024
Subscribe for listing gains
- One Mobikwik Systems Ltd (MobiKwik) has shown solid growth in recent years, achieving profitability in FY24. The company’s shift toward higher-margin financial services, backed by its existing payment user base, is a key driver. However, it lags competitors like PhonePe and Paytm in user base and service diversity.
- The digital payments market in India is projected to grow fivefold in five years, fuelled by increased smartphone use and merchant network growth. Despite these prospects, challenges such as slim margins, fierce competition, and the dominance of UPI pose risks to MobiKwik’s market position. Its success hinges on scaling its financial services, enhancing transaction volumes, and expanding into rural areas.
- The MobiKwik IPO, carrying a grey market premium (GMP) of 49%, presents both opportunities and risks. The substantial GMP suggests a strong debut on the stock exchanges, making this IPO attractive for potential listing gains. Long-term investors, however, should approach with caution, paying close attention to the growth in the company’s financial services business and competitive positioning.
About the company
Founded in
20 Mar'08
Managing director
Bipin Preet Singh
- MobiKwik operates as a platform business with a two-sided payments network, connecting consumers and merchants. As of June 30, 2024, it has onboarded 161.03 million registered users and empowered 4.26 million merchants to facilitate online and offline payments.
- MobiKwik operates across two main verticals: payment services and financial services. The platform's value for both new and existing users grows as it introduces innovative products across its digital credit, investments, and insurance segments. To boost revenue, MobiKwik aims to venture into investments and insurance, striving to become a comprehensive financial services provider.
STRENGTHS
- Improving Financials: MobiKwik has delivered robust growth, with operational revenue rising at a CAGR of 29% between FY22 and FY24. The EBITDA margin improved significantly from -25% to 3% in the same period. The company achieved a remarkable turnaround, moving from a loss of Rs 83.81 crore in FY23 to a profit of Rs 14.08 crore in FY24.
- Market Leadership in Wallet Services: Starting as a digital wallet platform for recharges, top-ups, and utility payments, MobiKwik has emerged as the largest wallet player by Gross Merchandise Value (GMV). However, it ranks third in registered wallet users, following Paytm Payments Bank and PhonePe.
- Strong GMV Growth: MobiKwik’s Payment GMV grew at an annual rate of 45.88%, while MobiKwik ZIP GMV (disbursements) saw an exceptional annual growth rate of 112% from FY22 to FY24.
RISK FACTORS
- Intense Competition: MobiKwik operates in India’s highly competitive fintech sector, facing rivals across multiple segments. Its core payment business is under pressure due to increasing competition and commoditization, resulting in a sharp decline in take rates.
- Declining Core Payment Business: The performance of MobiKwik’s core payment segment has been weakening, with a 14% CAGR decline from FY22 to FY24. However, growth in the financial services segment, which posted a 139% CAGR during the same period, has offset this decline.
- Regulatory Risks: Any tightening of regulations or new fintech norms introduced by the RBI could significantly impact MobiKwik’s operations and growth prospects.
Financials
All Values are in Cr.
Issue details
Issue type
Mainstream
Issue size
₹ 572 crore
Fresh Issue
₹ 572 crore
OFS
₹ -
Price range
₹ 265 - 279
Lot size
53 shares
Issue Objective
MobiKwik plans to use the net proceeds from the fresh issue for:
- Expanding its financial and payment services business;
- Investing in data, machine learning, AI, product development, and technology;
- Capital expenditure for its payment devices business; and
- General corporate purposes.
Dates
Bidding open
11 Dec'24
Bidding close
13 Dec'24
Allotment date
16 Dec'24
Refund date
17 Dec'24
Listing
18 Dec'24
IPO Reservations
Qualified institutional buyers
>75%
Non-institutional investors
<15%
Retail individual investors
<10%
Read the Offer Document
© 2025 by Liquide Solutions Private Limited, SEBI Registered Research Analyst (Registration number - INH000009816)
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