MobiKwik Shares Rise 8% Ahead of Q2 Results

MobiKwik Systems share price rose by nearly 8% to ₹601.35 on Tuesday, January 7, 2025, ahead of the company’s announcement of its Q2 results for the quarter ending September 2024. This marks the first quarterly results release since the company’s stock market debut in December 2024. MobiKwik was listed at ₹442.25, a 58.51% premium over its IPO price of ₹279. The stock is now trading 115% above its issue price.

MobiKwik’s Strong FY24 Performance

MobiKwik reported impressive growth in FY24. The company’s net revenue surged by 62.2%, reaching ₹875 crore, compared to ₹539 crore in FY23. It also achieved profitability with a profit before tax (PBT) of ₹14 crore, reversing an ₹81 crore loss in FY23. Additionally, MobiKwik improved its EBITDA, recording ₹22 crore in FY24, up from a loss of ₹78 crore the previous year. The EBITDA margin increased to 2.5% from a negative margin of -14.4% in FY23, highlighting the company’s focus on cost optimisation and efficient operations.

MobiKwik: A Leader in Digital Financial Services

Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik has grown into one of India’s leading digital financial platforms. It offers a wide range of services, including payments, digital credit, and investment solutions, serving consumers and merchants. The company has 161 million registered users and a strong network of 4.3 million merchants, including large retail chains and small businesses.

Market Share and IPO Success

MobiKwik holds a 23.11% market share in India’s PPI wallet segment by gross transaction value as of May 2024, making it the largest wallet player in the country. Its IPO, valued at ₹572 crore, was highly successful and oversubscribed 119 times due to strong investor interest in the company’s growth and profitability. The funds raised will be used to expand its financial services, enhance AI and machine learning capabilities, and improve payment infrastructure.

Strategic Stakeholders

Notable investors in MobiKwik include Bajaj Finance, which holds a 10.27% stake, the Abu Dhabi Investment Authority (ADIA) with 2.14%, and American Express, which owns 1.34%. These strategic investments reflect strong confidence in MobiKwik’s future growth and its important role in India’s digital payments sector.

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