MobiKwik, the fintech platform that has been in the news for its digital wallet and payment services, has made a remarkable debut on the stock exchange by listing at ₹444 per share. This opening price has been a whopping 59% premium over its issue price of ₹279, which signals robust investor interest and confidence in the company’s growth potential.
PC: India Today
MobiKwik launched its IPO through an bidding period that spanned on December 11-13. For the same, it gave a price range between ₹256 and ₹279 for each share. This time, MobiKwik sought to garner an amount totaling ₹572 crores using a fresh share issue against institutional and retail investors alike. Notably, demand was enormous; the amount offered to the qualified institutional buyers was subscribed 34 times while in the cases of the remaining non-institutional as well as retail investors, it stood at even higher multiple numbers of 88 and 113, respectively.
Such strong demand reflects growing investor confidence in the MobiKwik business model and its potential to capture a larger share of the Indian fintech market. The lot size for the IPO was set at 53 shares, requiring a minimum investment of ₹14,045, which indicates a healthy appetite among retail investors.
Early Trading Performance
Upon its market debut, MobiKwik’s share price quickly reached a high of ₹525 in the morning trading session. As of 11:14 AM, the shares were trading at ₹510, which corresponds to a market capitalization of approximately ₹3,962 crore (around $472 million). This valuation marks a substantial increase from the pre-IPO valuation of $197 million, showcasing a 2.4 times jump in market value.
MobiKwik will use the proceeds from the IPO to implement a strategic approach to funding growth initiatives. ₹150 crore will be put into scaling up the financial services business. ₹135 crore will go into scaling up the payments business. The company will also put ₹107 crore into research and development activities, which include data science, artificial intelligence, machine learning, and product technology. These investments are the lifeblood of MobiKwik, which will seek to expand its service offerings while sustaining its competitive advantage in this ever-changing fintech environment.
The revenue during the first quarter of FY25 was ₹342.2 crore, although MobiKwik incurred a minor loss of ₹6.6 crore during the quarter. Overall, the company seems to be on the right financial trajectory, considering the company posted a 62% year-on-year revenue growth in FY24. Here, the total revenue touched ₹875 crore as compared with ₹539 crore in FY23. Finally, the company also ensured to end FY24 with profit worth ₹14 crore. Thus, the company appears to have shifted the overall profitability metrics in a better direction.
MobiKwik had, prior to the IPO, Peak XV Partners as the largest external shareholder at 16.7% followed by Bajaj Finance at 13.41%. The co-founders, Bipin Preet Singh and Upasana Taku, held large stakes of 19.21% and 13.06% respectively, signifying that they are committed to the long-term success of the company.
MobiKwik’s debut on the stock exchange was impressive, which again indicates the growing interest in fintech companies in India, mainly in the digital payments sector. With a strong opening and ambitious plans for growth, MobiKwik is well-positioned to reap the opportunities presented by the expanding digital economy in the country. As it continues to innovate and enhance its service offerings, MobiKwik aims to solidify its position as a leader in the competitive fintech landscape.
