PC: Business Today
To bring a new entrant into the securities broking sector, MobiKwik has brought its wholly owned subsidiary, MobiKwik Securities Broking Private Limited (MSBPL). It is another expansion by the company in its financial services portfolio that the Ministry of Corporate Affairs has approved and disclosed in an National Stock Exchange (NSE) filing.
Expanding Financial Offerings
MobiKwik is planning to offer all of the stock and commodity brokerage services through MSBPL. Trading activity of shares, stocks, securities, debt instruments, commodities, currencies, and derivatives will be the subsidiary’s area of trading activities.
Furthermore, it also intends to get memberships to stock and commodity exchanges domestically and internationally, ready to act as a wide range of investors.
Financial Commitment
Initially, MSBPL has received an initial capital of INR 1 lakh and MobiKwik has promised to put in INR 2 crore in several tranches. It is evident that the company is serious in establishing a foothold in this competitive stock broking industry as it has given this financial backing.
Competing in a Crowded Market
And MobiKwik has entered the stock broking space where it competes against the biggies like Zerodha, Groww and AngelOne. The other leaders in the industry are groww with the highest number of active users, Zerodha, AngelOne, Upstox, and ICICI Direct respectively. Leveraging its technological expertise and user base, MobiKwik wants to stake merchandise from such a crowded but lucrative market.
MobiKwik’s Current Market Position
Now, a registered user base of 172 million and a merchant network of 5 million merchants, MobiKwik had 172 million registered users and a merchant base of 5 million. The GMV of the company’s payment grew 2x yoy to ₹29,400 crore. In the third quarter of the current fiscal year ended March 31, MobiKwik’s total net loss was ₹55.2 crore and revenue ₹269 crore.
As of now, MobiKwik’s shares are worth ₹ 308 per share, with a total market capitalization of ₹ 2,393 crore (approx ₹ 278 million). Seeing the market volatility, the company had reached a 52 week low of ₹231 on March 17.
Conclusion
MSBPL is a move that MobiKwik is undertaking to diversify its offerings and looking for the stock broking sector is witnessing growth. The company is well established on the digital front and has a solid financial ecosystem to challenge its industry leaders and also serve and cater to changing investor needs.
