Net1 Fully Exits MobiKwik with Block Deal Worth ₹143 Crore

South Africa-based Net1 Applied Technologies has exited its long-standing investment in Indian fintech platform MobiKwik. The company offloaded its entire 8% stake via a block deal conducted on Thursday.

Net1 sold all 62,15,620 shares it held in MobiKwik at a price of ₹230.16 per share, raising approximately ₹143 crore from the sale. The data comes from the National Stock Exchange (NSE) and marks the end of Net1’s nearly decade-long involvement with MobiKwik.

Net1 first invested in MobiKwik in 2016, injecting $40 million (around ₹270 crore at the time). The strategic goal was to integrate Net1’s virtual card and financial inclusion technologies into MobiKwik’s expanding platform in India. Despite the potential synergies, the exit has not yielded the expected returns.

Loss-Making Exit Despite IPO Surge

MobiKwik listed on the stock market in December last year at ₹444, delivering a 59% premium over its issue price and touching post-listing highs of ₹698. However, the stock has since experienced sharp fluctuations and is currently trading near ₹261—just above Net1’s exit price, implying a realised loss on their original investment.

Mixed Financial Performance by MobiKwik

In Q4 FY25, total income rose to ₹278.5 crore, a 2.6% increase from ₹271.6 crore in Q4FY24. The quarter ended with an EBITDA loss of ₹45.8 crore, attributed to lower contribution margins, even as fixed costs declined. A 5.4% reduction in fixed costs was driven by continued focus on digital process enhancements, scale efficiencies, and comprehensive cost optimization across the board.

The platform continued its strong growth momentum this quarter, expanding its user base to 176.4 million, with 4.4 million new users added. The merchant base also grew to 4.59 million, with 76,000 new merchants onboarded during the quarter. In the payments segment, Gross Merchandise Value (GMV) more than doubled year-over-year, increasing 2.3x to ₹33,100 crore. Payment's revenue also grew 2x YoY, reaching ₹211.6 crore.

The Company achieved an industry-leading payments gross margin of 24%, up 26% quarter-on-quarter. With this robust growth in GMV and a rising contribution from financial services distribution, the Company remains confident in leveraging its scalable, tech-driven business model to drive long-term, value-accretive growth.

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Ms. Upasana Taku Executive Director, Co-founder & CFO, One MobiKwik Systems Ltd, said, "Our Payments Business has shown remarkable strength, growing threefold year-over-year. Our focus for this year will be to leverage AI as a growth catalyst - to accelerate go-to-market, drive revenue growth, and expand margins through intelligent automation."

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