MobiKwik IPO 2024: Everything You Need to Know Before Investing
Mobikwik Systems Limited IPO- Overview
MobiKwik, one of India’s leading digital payment service providers and BNPL (Buy Now Pay Later) platforms, is set to launch its much-anticipated Initial Public Offering (IPO). This IPO marks a significant milestone for the fintech giant as it seeks to expand its operations and strengthen its position in the rapidly growing digital payment ecosystem. The MobiKwik IPO, a much-anticipated book-built issue worth ₹572 crore, comprises a fresh issue of 2.05 crore shares. The subscription period runs from December 11, 2024, to December 13, 2024, with the share allotment expected on December 16, 2024, and the listing date tentatively set for December 18, 2024, on the BSE and NSE. The price band for the IPO is set at ₹265 to ₹279 per share, with a minimum lot size of 53 shares, requiring retail investors to invest at least ₹14,787. For small Non-Institutional Investors (sNII), the minimum investment is 14 lots (742 shares), totalling ₹2,07,018, while big Non-Institutional Investors (bNII) need 68 lots (3,604 shares), amounting to ₹10,05,516.
IPO Subscription Period
The MobiKwik IPO is scheduled to open for subscription on December 11, 2024, and will close on December 13, 2024. The share allotment is expected to be finalized by December 16, 2024, with the tentative listing date set for December 18, 2024, on both the BSE and NSE.
Pricing and Lot Details
The MobiKwik IPO offers investors an opportunity to participate in the growth of one of India’s leading fintech companies. Key details are as follows:
- Price Band: ₹ ₹265 to ₹279 per share. The lower end of the price band is ₹265, while the upper cap is ₹279.
- Lot Size: Investors must purchase a minimum of 53 shares, amounting to approximately ₹14,787 for retail investors at the upper price band.
- Issue Size: The IPO aims to raise ₹572 crore, comprising a fresh issue of 2.05 crore shares.
- Face Value: ₹2 per equity share. The face value represents the nominal value, with the IPO price reflecting a premium based on the company’s valuation and market demand.
- The MobiKwik IPO follows a structured bidding system designed to cater to various investor categories, including retail investors and high-net-worth individuals (HNIs). Below is a breakdown of investment requirements:
| Application | Lots | Shares | Amount (Rs.) |
| Retail (Min) | 1 | 53 | 14,787 |
| Retail (Max) | 13 | 689 | 1,92,231 |
| Small HNI (Min) | 14 | 742 | 2,07,018 |
| Small HNI (Max) | 67 | 3,551 | 9,90,729 |
| Large HNI (Min) | 68 | 3,604 | 10,05,516 |
Reservation Structure
The MobiKwik IPO has a structured reservation system to ensure participation from various investor categories:
- Qualified Institutional Buyers (QIBs): 75% of the total issue is reserved for QIBs. This includes mutual funds, foreign institutional investors, banks, and other large financial institutions.
- Non-Institutional Investors (NIIs): 15% of the issue is allocated to NIIs, including high-net-worth individuals (HNIs) who bid for larger lot sizes.
Small HNIs (sNIIs): Minimum 14 lots (742 shares).
Large HNIs (lNIIs): Minimum 68 lots (3,604 shares). - Retail Investors: 10% of the issue is reserved for retail investors, with a minimum lot size of 53 shares, requiring an investment of ₹14,787 at the upper price band.
Key Dates & Timelines
MobiKwik IPO Timeline (December 2024)
- IPO Open Date: Wednesday, December 11, 2024
- IPO Close Date: Friday, December 13, 2024
- Basis of Allotment: Monday, December 16, 2024
- Initiation of Refunds: Tuesday, December 17, 2024
- Credit of Shares to Demat Accounts: Tuesday, December 17, 2024
- Listing Date on BSE and NSE: Wednesday, December 18, 2024
Book Running Lead Managers
The MobiKwik IPO is being managed by the following Book Running Lead Managers (BRLMs):
- SBI Capital Markets Limited
- DAM Capital Advisors Limited
The registrar for the IPO is Link Intime India Private Ltd, which is responsible for processing applications and managing the allotment process.
Promoters Information
Here is the promoter and key management information for the Mobikwik Systems Limited IPO:
- Bipin Preet Singh: Co-founder, Managing Director, and CEO One Mobikwik Systems Limited. He is a visionary entrepreneur and one of the founding pillars of MobiKwik. With a degree in engineering from the Indian Institute of Technology (IIT) Delhi, Bipin has over two decades of experience in technology and innovation. He conceptualized MobiKwik in 2009 with a vision to create a cashless economy in India. Under his leadership, MobiKwik has emerged as a leading digital payment service provider, catering to over 161 million users and 4.26 million merchants as of June 2024. Bipin continues to steer the company’s strategic direction, focusing on innovation and customer-centric solutions.
- Upasana Taku: Co-founder, Chairperson, and COO, Upasana Taku co-founded MobiKwik alongside Bipin Preet Singh. She holds a Master’s degree in Management Science and Engineering from Stanford University. With expertise in payments and financial technology, she has been instrumental in building MobiKwik’s operational frameworks, user acquisition strategies, and business scalability. Upasana is also recognized as one of India’s top women entrepreneurs and has driven key initiatives such as MobiKwik ZIP and other financial products. Her focus remains on enhancing operational efficiency and creating innovative credit products.
- Koshur Family Trust: Promoter Entity, his trust is an institutional promoter holding a significant stake in the company. The trust ensures compliance and governance while supporting the long-term growth vision of MobiKwik.
- Narinder Singh Family Trust: Promoter Entity, Like the Koshur Family Trust, this entity contributes to the company’s governance structure and provides backing for MobiKwik’s strategic initiatives.
About One Mobikwik Systems Ltd.
One Mobikwik Systems Limited is a leading fintech company founded in March 2008, with a mission to drive financial inclusion for underserved populations in India. The company offers a wide range of digital wallets, payment solutions, and financial services. As of June 30, 2024, Mobikwik boasts 161.03 million registered users and 4.26 million merchants, enabling seamless transactions both online and offline. The Mobikwik app offers users a variety of payment methods, such as UPI, Mobikwik Wallet, and co-branded credit cards. Consumers can pay utility bills, shop at e-commerce platforms, purchase goods at retail outlets, and transfer money. A standout feature, Pocket UPI, allows users to make payments without linking a bank account, offering greater flexibility and ease of use.
Mobikwik has diversified its offerings to include credit products like MobiKwik ZIP, a pay-later service with a 30-day interest-free credit line, and ZIP EMI, which provides installment-based personal loans. Additionally, the platform provides investment products such as mutual funds, digital gold, fixed deposits, and peer-to-peer lending, enhancing its financial services portfolio. Advanced features like Lens, which offers personalized financial insights, further enrich the user experience. For merchants, Mobikwik offers digital payment acceptance tools, including POS devices and soundboxes, helping businesses across Tier 2+ cities, small retailers, and large chains accept payments more efficiently. This fosters financial inclusion and supports the digital economy’s growth by catering to diverse merchant needs. With its platform-based approach, Mobikwik is empowering millions of users and merchants, driving digital payments and financial inclusion in India
MobiKwik’s key strengths include its efficient customer acquisition model, with a low cost of ₹32.87 per user, driving substantial growth in its customer base without significant marketing expenditures. The platform also benefits from high repeat usage, with 90.30% of users returning to its MobiKwik ZIP pay-later service, demonstrating strong consumer trust. Furthermore, MobiKwik has seen robust growth in its wealth management services, evidenced by its ₹18,348M AUM in its Xtra product. The company’s use of AI-driven insights to provide personalized financial guidance enhances the user experience, while its strong brand recognition in digital payments ensures high engagement and steady daily activity. Its scalable technology platform further enables seamless transactions and ensures high system availability, supporting its large user base and operational efficiency.
However, MobiKwik also faces several risks. Regulatory oversight by the RBI could impact its operations, as fintech companies are subject to evolving regulations. Additionally, any changes in how the net proceeds from its IPO are used could affect the company’s ability to meet its revenue expectations. Security breaches remain a significant concern, as such incidents could severely damage its reputation and financial performance. The growth in its financial services segment may not match historical trends, which could limit its ability to scale. Losing key consumer or partner networks poses another risk, potentially affecting its revenue and future prospects. Lastly, intense competition in the fintech industry from larger players like Paytm and PhonePe presents a constant challenge to MobiKwik’s market position.
These strengths and risks collectively shape MobiKwik’s strategic outlook in the competitive fintech market.
Financial Highlights
| Particulars | FY24 | FY23 | FY22 |
| Revenue from Operation (in ₹ million) | 8750.03 | 5394.67 | 5265.65 |
| Profit/Loss After Tax (PAT) (in ₹ million) | 140.79 | -838.14 | -1281.62 |
| Net Worth (in ₹ million) | 1625.89 | 1426.94 | 2165.42 |
| Earnings per share in ₹ | 2.46 | -14.66 | -23.04 |
| EBITDA (in ₹ million) | 372.2 | -559.2 | -1154.06 |
| Total Borrowings (in ₹ million) | 2116.99 | 1922.73 | 1509.14 |
| Return on Net Worth (RoNW) (%) | 8.66 | -58.74 | -59.19 |
IPO Objectives
The objective of MobiKwik’s Initial Public Offering (IPO) is to raise capital to fund its growth and expansion plans. The company intends to use the proceeds to enhance its product offerings, strengthen its technology infrastructure, and invest in customer acquisition to attract more users and merchants. Additionally, a portion of the funds will be utilized to repay or prepay certain borrowings, reducing its debt and improving financial stability. The IPO also aims to support general corporate purposes, including administrative costs and strategic investments. By going public, Mobikwik seeks to enhance its brand visibility, provide liquidity for existing shareholders, and establish access to public markets for future fundraising. These objectives align with the company’s vision of scaling its digital payments and financial services ecosystem in India’s rapidly growing fintech market.
Subscription Status
| Investor Category | Subscription (Times) |
| Retail Individual Investors (RIIs) | 134.67 |
| Non-Institutional Investors (NIIs) | 108.95 |
| Qualified Institutional Buyers (QIBs) | 119.5 |
| Employees | Data not specified |
| Overall | 119.38 |
Conclusion
Should You Participate in the Mobikwik IPO?
Deciding to invest in Mobikwik’s IPO depends on evaluating the company’s fundamentals, market position, and growth potential relative to risks. Here are key points to consider:
Reasons to Participate
- Growth Potential in the Fintech Sector: India’s digital payments market is expanding rapidly, and Mobikwik is well-positioned to benefit from this trend with its strong presence in mobile wallets and Buy Now Pay Later (BNPL) services.
- Revenue Growth: The company has shown steady growth in revenue, driven by increased user adoption and merchant partnerships, indicating strong business traction.
- Digital Ecosystem Synergy: Mobikwik’s ability to integrate payments, lending, and financial services within a single platform creates cross-selling opportunities and a competitive edge.
- Improved Unit Economics: Recent reductions in cash burn and operating expenses signal progress toward profitability.
Reasons to Reconsider
- Profitability Concerns: The company has yet to achieve consistent profitability, and its path to sustained positive earnings remains uncertain.
- Highly Competitive Market: Mobikwik faces fierce competition from well-funded players like Paytm, PhonePe, and Google Pay, which could impact its market share and margins.
- Dependence on BNPL Growth: A significant portion of its future growth relies on BNPL adoption, which is subject to regulatory scrutiny and economic cycles.
- Valuation Risks: Concerns about the IPO pricing being on the higher side might reduce the upside potential for investors.
Recommendation
If you have a high-risk appetite and believe in the long-term growth of India’s fintech industry, the Mobikwik IPO could be a strategic addition to your portfolio. However, investors seeking stability and immediate returns may prefer to wait for further clarity on the company’s profitability and competitive positioning. A diversified approach to fintech investments is advisable to mitigate risks.