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MobiKwik Looks Forward to 2x Revenue this Fiscal, Remains Alert on Public Issue Launch

13 September 20224 mins read by Angel One
MobiKwik Looks Forward to 2x Revenue this Fiscal, Remains Alert on Public Issue Launch
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According to a company official, IPO-bound payment provider firm MobiKwik expects to report a 100% growth in revenue for the current fiscal year. The company’s COO and chairperson said that this MobiKwik IPO is a significant opportunity for the firm. She further added that MobiKwik would not launch its IPO during unstable market conditions and rather wait for the market to stabilise.

Read on to know more about this topic.

Doubled Expectations for MobiKwik

MobiKwik’s revenues stood at Rs. 302.25 crores in FY 2021. In addition, it witnessed a loss of Rs. 111.3 crores during the same fiscal. Upon experiencing such earnings, the company is now doubling its financial expectation for Q4 of FY 2021.

Regarding this, the company’s COO Upasana Taku did not mention a definite timeline. However, she mentioned that the firm could cover its losses in a few quarters if it increases its revenue and controls the costs.

Interestingly, MobiKwik has managed to get to last year’s revenue in just two quarters. So, investors can calculate its business performance for the entire year. Viewing such figures, it seems that the company has doubled its revenue and EBITDA loss are even lower or the same.

Moving further, Taku said that MobiKwik has been keen on doubling revenues every year since the previous four years.

In a draft document, the company accepted being hit severely by the COVID-19 pandemic. Its Buy Now Pay Later merchandise suffered heavy losses as compared to the previous year. The company’s merchandise value decreased by around 38.22% to reach Rs. 299.94 crores in 2020-21. Previously, during 2019-2020, BNPL’s merchandise value in MobiKwik was Rs. 485.49 crores.

However, MobiKwik has now outgrown pre-COVID levels and features a fair performance during the current fiscal.

About MobiKwik and Its IPO

MobiKwik is a fintech company featuring its name among India’s most prominent mobile wallet and BNPL players. Its business is divided into three primary segments: consumer payments, BNPL and payment gateway.

As of March 2021, it had around 101.37 million registered users in the county and 3.44 million billing, e-commerce and physical retail partners.

Earlier in July, it filed its draft papers with the market regulator for the launch of its IPO. According to its DRHP, the initial public offer of MobiKwik will have an issue size of Rs. 1,900 crores. Further, out of the total issue size, Rs. 1,500 crores will be generated through fresh share issuance, and the remaining amount of Rs. 400 crores will be raised through an OFS.

The primary objectives of this public offer are:

  • Funding inorganic and organic growth opportunities
  • General corporate purposes

When speaking about its IPO’s timeline, the company’s COO said it has permission to go public until November 2022. It will feature listing in the bourses when the economic conditions become stable.

Bottom Line

Over its concerning quarterly earnings, it is evident that MobiKwik is a bit sceptical about launching its IPO at the moment. However, it plans to communicate about capital efficiency to its people and discuss unique selling opportunities to succeed in its public issue.

Source – The Economic Times

Frequently Asked Questions

  1. What is MobiKwik’s BNPL segment’s growth in the current fiscal?
    According to the company’s COO, its BNPL segment has witnessed a 22 times growth as compared to the previous year.
  1. Who are the promoters of MobiKwik?
    Promoters of MobiKwik are Bipin Preet Singh, Koshur Family Trust, Upasana Rupkrishan Taku and Narinder Singh Family Trust.
  1. What is the face value of MobiKwik’s shares?
    The face value of these shares is Rs. 2 per share.

Disclaimer: This blog is exclusively for educational purposes and does not provide any advice/tips on investment or recommend buying and selling any stock.

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