MobiKwik IPO

MobiKwik is one of the leading Buy Now Pay Later (BNPL) and mobile wallet providers. It has earned its popularity among the masses by easing regular mobile payments and extending the benefits of BNPL. In addition, the digital payment company aims to address the credit requirements of the rapidly increasing online consumers.

Services like peer-to-peer payments through UPI, MobiKwik Wallet and MobiKwik Wallet to bank payments are available on this platform. In addition, MobiKwik has launched Zaakpay, its subsidiary payment gateway and MobiKwik Zip, a flagship BNPL solution to ease the process of accepting and paying money digitally.

MobiKwik IPO Objectives

- To prepay/repay the company's outstanding borrowings, either full or partially.
- Meeting organic or inorganic growth initiatives.
- To address corporate objectives.

MobiKwik IPO - Details

Per the DRHP filed with SEBI, the issue size of MobiKwik IPO will be Rs. 1900 crore comprising fresh share issue of up to Rs. 1500 crore. Moreover, the IPO will have an offer for sale worth Rs. 400 crore by promoters and certain shareholders. The company is targeting a valuation of approximately $1 billion with this upcoming IPO. Qualified institutional buyers will be allotted 75% of the IPO shares, whereas non-institutional and retail investors will be allotted 15% and 10% of the shares, respectively.

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Listing at NSE, BSE

MobiKwik IPO Important Dates

IPO Open Date September 2021
IPO Close Date September 2021
Basis Of Allotment Date September 2021
Initiation Of Refunds September 2021
Credit Of Shares To
Demat ACcount
September 2021
IPO Listing Date September 2021
UPI Mandate Expiry Date September 2021

Note: MobiKwik IPO is expected to be launched in September 2021. Since the actual dates are yet to be announced, the table represents the tentative timeline for this upcoming IPO.

Why should you invest in MobiKwik IPO?

MobiKwik has leveraged the upward trend in digital payments and mobile wallet culture way before its peers. The thorough understanding of the virtual platform and ever-changing online payment patterns continue to benefit the business model of MobiKwik.

Moreover, this digital payment company has been proactively expanding its service offerings to boost its customer base and leverage newer market trends. Since the growth of virtual platforms, especially, mobile wallets are expected to surge in the upcoming years investing in MobiKwik IPO could prove useful in the long run.

Financial highlights

MobiKwik’s total earnings plummeted by 18% to Rs. 302 crore as the losses surged by 12% to Rs. 111 crore for the financial ending on 31 March 2021. This table offers a brief idea of the company's financial highlights from 31 March 2019 to 31 March 2021.

Financial year Total Revenue Total Assets Profit after tax
2018-19 Rs. 160.23 crore Rs. 335.08 crore Rs. 147.97 crore
2019-20 Rs. 3,69.85 crore Rs. 337.94 crore Rs. 99.92 crores
2020-21 Rs. 302.26 crore Rs. 423.14 crore Rs. 111.30 crore

How to apply for MobiKwik IPO?

You can apply for the MobiKwik IPO in these ways:

UPI
Link your bank account to a reliable UPI ID and register it with your Angel One account. Proceed to book MobiKwik IPO shares using the ID, confirm the payment on the UPI app, and block the amount for allotment.

Demat Account

1. If you are already a client of Angel One, apply directly for MobiKwik IPO, click here.
2. If you’re a new investor Open DEMAT Account for free with Angel One to begin your investment journey.

MobiKwik IPO - Noteworthy Highlights

The significant highlights of MobiKwik include –

-The digital payment company has more than 107 million registered users.

-It has a network of nearly 3.44 million online and offline billing merchant partners.

-Besides digital payment, the company is adept at cross-selling small sachets of insurance policies and loans.

-MobiKwik also offers American Express-powered credit cards.

-According to The Economics Times, MobiKwik records over a million transactions each day across its services.

MobiKwik IPO - SWOT Analysis

strengths

Strengths

  • Exclusive products: MobiKwik extends innovative products to its customer base. For example, MobiKwik offers instant small-ticket loans, EMI payment options, and insurance policy covers besides regular online bill payment and recharge.
Weaknesses

Weaknesses

  • Security breach: Lack of regulations against online fraud increases the threats of security breaches and cyberattacks. This poses a potential threat to the company's reputation.
  • Irregularities in managing records: Irregularities in compliance with RBI, system failure and inability to cross-sell insurtech could emerge as big challenges.
  • Lack of credit ratings: This could hamper its ability to access growth capital and keep its cash flow stream continuous.
Opportunities

Opportunities

  • Surge in digital payment: As more emphasis is being laid on virtual platforms, MobiKwik has a great scope of emerging as a dominating name in the e-commerce payment industry.
Threats

Threats

  • Growing competition: Intense competition in fintech space exposes MobiKwik to the constant fear of losing market shares to its peers. With newer offerings and better customer experience, MobiKwik’s competitors could eat into the company’s existing customer base.
  • Economic slowdown: Increase in inflationary levels, and a slow down in economic growth can increase volatility in the financial market. In turn, it could stagnate the company’s growth.
  • Change in domestic rules: Change in domestic laws regarding taxation or legal compliance could impact MobiKwik’s plans negatively.
Strenghts Strengths
Weaknesses Weaknesses
Opportunities Opportunities
Threats Threats

Strengths

  • Exclusive products: MobiKwik extends innovative products to its customer base. For example, MobiKwik offers instant small-ticket loans, EMI payment options, and insurance policy covers besides regular online bill payment and recharge.

Weaknesses 

  • Security breach: Lack of regulations against online fraud increases the threats of security breaches and cyberattacks. This poses a potential threat to the company's reputation.
  • Irregularities in managing records: Irregularities in compliance with RBI, system failure and inability to cross-sell insurtech could emerge as big challenges.
  • Lack of credit ratings: This could hamper its ability to access growth capital and keep its cash flow stream continuous.

Opportunities 

  • Surge in digital payment: As more emphasis is being laid on virtual platforms, MobiKwik has a great scope of emerging as a dominating name in the e-commerce payment industry.

Threats 

  • Growing competition: Intense competition in fintech space exposes MobiKwik to the constant fear of losing market shares to its peers. With newer offerings and better customer experience, MobiKwik’s competitors could eat into the company’s existing customer base.
  • Economic slowdown: Increase in inflationary levels, and a slow down in economic growth can increase volatility in the financial market. In turn, it could stagnate the company’s growth.
  • Change in domestic rules: Change in domestic laws regarding taxation or legal compliance could impact MobiKwik’s plans negatively.

MobiKwik: A competitive analysis

MobiKwik’s competitive advantage lies in its ability to cross-sell and use data science and technology for growth. Also, its capability of managing risks work in favour of this company.

Over the years, the company has entered into multiple strategic partnerships with IDFC Bank, DT One, Home Credit, MakeMyTrip, JustEat and PVR. This has helped MobiKwik strengthen its market presence significantly.

Since the trends of mobile wallets do not manifest any signs of a slowdown in future, MobiKwik is likely to perform well in the coming years. However, the same catalysts also favour MobiKwik’s competitors such as Paytm, FreeCharge, PhonePe, JusPay and FastCharge.

MobiKwik IPO FAQs

What is MobiKwik IPO?

MobiKwik has filed a DRHP with SEBI, which suggests that the company will raise Rs. 1900 crore via IPO. Primary share sales would be approximately Rs. 1500 crore. Also, there will be an offer for sale encompassing Rs. 400 crore.

When will MobiKwik IPO open?

MobiKwik IPO will open sometime in September 2021.

What is the minimum lot size for retail investors?

The minimum lot size for retail investors is yet to be announced. We’ll update the page once the issuer makes the details public.

When is MobiKwik IPO listing date?

The MobiKwik IPO listing date is still not known. Once it is announced, we’ll update the same.

How will I receive the MobiKwik IPO?

Retail investors will receive MobiKwik IPO shares into their Demat account directly once the allotment is complete.

Which entities have been appointed as merchant bankers for this IPO?

MobiKwik has appointed ICICI Securities, IIFL Securities, Credit Suisse Securities (India) Private Limited, Jefferies India and BNP Paribas as its merchant banker.

Does MobiKwik IPO have a reservation for company employees?

Yes, MobiKwik IPO will have a reservation for the company’s employees.

Who is the registrar of MobiKwik IPO?

Link Intime India Private Ltd is the registrar for this upcoming IPO.

Who are the investors of MobiKwik?

MobiKwik’s investors include Bajaj Finance, Tree Line, Sequoia Capital India and Amex and Cisco.

Which entities are offering shares through MobiKwik IPO?

The entities are Bajaj Finance, Sequoia Capital India Investments IV, American Express Travel Related Services Company Inc, Tree Line Asia Master Fund (Singapore) Pte Ltd, Sequoia Capital India Investment Holdings III, Cisco Systems (USA) Pte Ltd, and MobiKwik promoters.

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