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Digital payments firm MobiKwik has announced a revised Initial Public Offering (IPO) size of ₹572 crore, marking its third adjustment since its initial filing in 2021. The IPO will open for subscription on December 11, 2024, and close on December 13, with the stock set to list on December 18.
Key IPO Details
The IPO price band is set at ₹265-₹279 per share, with anchor bidding scheduled to begin on December 10. Investors can bid for a minimum lot size of 53 shares, amounting to ₹14,787 at the upper price band.
The issue has been structured to allocate 75% of shares to Qualified Institutional Buyers (QIBs), 15% to Non-Institutional Investors (NIIs), and 10% to retail investors.
Objectives of the IPO
The funds raised will be used strategically to strengthen MobiKwik’s core operations:
- ₹150 crore for expanding financial services.
- ₹135 crore for growing the payment business.
- ₹107 crore for research and development in artificial intelligence, machine learning, and technology innovation.
- ₹70.2 crore for capital expenditure on payment devices.
A Journey of Revisions
Initially planning to raise ₹1,900 crore in 2021, MobiKwik scaled back its target to ₹700 crore in January 2024 due to unfavorable market conditions and underwhelming performance by peer startups in the public markets.
MobiKwik’s Business Overview
Founded by Bipin Preet Singh and Upasana Taku, MobiKwik has positioned itself as a key player in India’s digital financial ecosystem, bridging financial inclusion for underserved populations. The platform serves 161.03 million users and 4.26 million merchants with offerings including:
- Digital wallets.
- Unified Payments Interface (UPI) services.
- Peer-to-peer lending.
- Credit products.
Market Position and Financial Performance
MobiKwik holds a 23.11% market share in Prepaid Payment Instruments (PPI) wallet transactions, making it the largest wallet player in India as of May 2024.
The company posted strong financial results in FY24, with revenue of ₹875 crore—a 62% increase from ₹539 crore in FY23. It also achieved profitability with a net profit of ₹14.08 crore in FY24, recovering from an ₹83.81 crore loss in FY23. However, Q1 FY25 saw a net loss of ₹6.62 crore despite revenue of ₹342.2 crore.
Managing the IPO
SBI Capital Markets and Dam Capital Advisors are the book-running lead managers for the IPO, with Link Intime India Private Ltd serving as the registrar.
Outlook
With its revised IPO size and strategic allocation of funds, MobiKwik aims to solidify its position as a leader in the digital payments ecosystem. The company’s focus on innovation, financial inclusion, and market expansion reflects its commitment to sustaining growth in a competitive fintech landscape.
By leveraging its robust user base and diverse product offerings, MobiKwik is poised to attract significant investor interest while addressing evolving consumer needs in India’s rapidly growing digital economy.
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