One MobiKwik Systems Limited (MobiKwik) IPO

MobiKwik Systems, one of India’s leading digital wallet platforms, is launching its IPO from December 11 to December 13, 2024. The IPO offers ₹572 crores through a fresh issue, with a price band of ₹265 to ₹279 per share. Investors can bid for a minimum lot of 53 shares. At this price, the company’s valuation stands at $250 million, significantly lower than its 2021 private valuation of $924 million.

Source: Chittorgarh

Founded in 2009, MobiKwik is well-known for its payments platform but also operates in digital credit, investments, and insurance services. 

Mobikwik core STRENGTHS include

  • A vast merchant network of 4.26 million
  • A strong market position as the 4th largest digital financial product platform in India, and 
  • Effective operational management of credit.

However, the company has had CHALLENGES, including

  • Unstable financial performance, 
  • Negative operating cash flow, and 
  • A 2021 data breach controversy. 

Although it turned profitable in FY24 with a net profit of ₹16 crores, losses of ₹6.6 crores in Q1 FY25 highlight financial instability.

Proceeds from the IPO will be used to enhance its technology through investments in AI and machine learning, as well as to expand its financial and payment services.

In comparison to its listed peer, Paytm, MobiKwik demonstrates better margins and operational efficiency but lags behind in revenue and net worth. Investors should evaluate both its growth potential in India’s burgeoning fintech sector and the associated risks before investing.

DISCLAIMER: This article is not meant to be giving financial advice. Please seek a registered financial advisor for any investments.

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