One MobiKwik Systems IPO is now live on Upstox!

Founded in March 2008, MobiKwik is a prominent fintech platform specialising in digital wallets and online payment services. It enables users to pay utility bills, shop online or offline, transfer funds, and make UPI or RuPay-based QR payments.

Operating under two main verticals - Payments and Financial Services - the company offers credit solutions like “MobiKwik ZIP,” investments, and insurance, leveraging digital tools such as Aadhaar, Digi-Locker and NSDL for seamless experiences.

As of 30 June 2024, MobiKwik supports 16.1 crore registered users and 0.43 crore merchants across online and offline channels, with 80% of its users and merchants based in Tier 1 and 2 cities. Financial services revenue grew at a CAGR of 78.7% from FY22–FY24, driven by partnerships with 11 banks and NBFCs, with credit partner AUM reaching ₹2,495.4 crore as of 30 June 2024.

The number of smartphone users in India is set to cross the 100 crore mark in five years’ time and online transactions have grown four times in the last five years. With India’s internet economy expected to exceed $600 billion by FY2030, MobiKwik is in a strong position to expand its digital payments and credit services.

IPO Details
MobiKwik is now launching an IPO valued at ₹572 crore, comprising wholly fresh issues. Its shares will be listed on the NSE and BSE.

Key Details

  • Company Name: One MobiKwik Systems Limited
  • Company Established On: March 20, 2008
  • Company Type: Private Limited Company
  • Managing Director and CEO: Bipin Preet Singh

Financial Overview (₹ crore)

Particulars FY22 FY23 FY24 Q1FY25
Revenue 526.57 539.47 875 342.27
Net Profit -128.16 -83.81 14.08 -6.62

Strengths

  • MobiKwik ZIP boasts a 93% repeat usage rate, highlighting strong consumer loyalty.
  • Scalable credit disbursement operations support substantial growth while minimising costs.
  • Its app and diverse payment solutions drive high brand recall, with its curated P2P lending product, Xtra, reaching ₹1,331.9 crore AUM in 18 months.
  • An advanced cloud infrastructure helps in processing vast amounts of transactional data while applying machine learning to drive continuous innovation for users and merchants.
  • Strategic marketing and low CAC drive retention in India’s middle-income segment.

Risks

  • RBI licensing risks could disrupt operations.
  • Data breaches pose financial and reputational threats.
  • Over 90% of its credit partner AUM stems from top three lending partners, increasing vulnerability to disruptions or changes in these partnerships.
  • Customer retention remains a challenge.
  • Profitability is inconsistent, with a small profit in FY24 but a loss in Q1 FY25.
  • New Default Loss Guarantee (DLG) regulations may hinder lending business’ scalability.

You can now apply for the One MobiKwik Systems IPO on Upstox. Click here.