Last Updated on May 24, 2022 by Anjali Chourasiya

Continuing the IPO trail, yet another company is all set to go public. MobiKwik with approximately 101.37 mn. registered users and over 3.44 mn. e-commerce, physical retail, and biller partners as of 31 March 2021 has submitted its offer documents to SEBI. Continue reading more about this company to analyse and decide whether to subscribe to its upcoming IPO or not. Read on!

About MobiKwik

Mobikwik, founded in 2009, is a technology-driven Fintech firm that is one of India’s leading mobile wallet (MobiKwik Wallet) and Buy Now Pay Later (BNPL) companies.

This company was incorporated under the name ‘One MobiKwik Systems Private Limited’ on 20 March 2008 at New Delhi as a private limited company, under the Companies Act, 1956. Thereafter, it was converted into a public limited company, and the name of the company was changed to ‘One MobiKwik Systems Limited’ on 25 June 2021.


Operations of the company

The business operations of the company are organised into three key segments:

BNPL – Consists of MobiKwik Zip and Zip EMI, which give middle-class Indians with accessible and cheap small-ticket credit for everyday payments as well as discretionary shopping.

Consumer Payments – Comprising MobiKwik Wallet, a mobile payment app.

Payment Gateway – Includes Zaakpay, a payment gateway aggregator that provides online retailers with end-to-end payment solutions.

The firm is focusing on India’s fast-growing online payments sector by enabling everyday mobile payments as well as the benefits of Buy Now Pay Later (BNPL) offers.

Promoter and investors exiting their shares

Bipin Preet Singh, Upasana Rupkrishan Taku, Koshur Family Trust, and Narinder Singh Family Trust are the company promoters.

The following is the list of promoters/investors selling their shares:

  • American Express Travel Related Services Company is selling equity shares worth up to Rs. 99.82 mn.
  • Bajaj Finance Limited is selling equity shares worth up to Rs. 689.81 mn.
  • Bipin Preet Singh is selling equity shares worth up to Rs. 1,113.33 mn.
  • Cisco Systems (USA) Pte. Ltd. is selling equity shares worth up to Rs. 114.84 mn.
  • Sequoia Capital India Investment Holdings III is selling equity shares worth up to Rs. 208.79 mn.
  • Sequoia Capital India Investments IV is selling equity shares worth up to Rs. 741.12 mn.
  • Tree Line Asia Master Fund (Singapore) Pte. Ltd. is selling equity shares worth up to Rs. 244.12 mn.
  • Upasana Rupkrishan Taku is selling equity shares worth up to Rs. 788.16 mn.

About MobiKwik IPO 

  • This IPO is a 100% book building offer (the process by which an underwriter attempts to determine the price at which an IPO will be offered).
  • MobiKwik IPO is likely to be listed on the BSE and NSE.
  • The offer comprises a fresh issue of equity shares by the company aggregating up to Rs. 15,000 mn and an offer for sale aggregating up to Rs. 4,000 mn.

Book running lead managers and registrar of the MobiKwik IPO

The joint global coordinators and lead managers of the MobiKwik IPO are ICICI Securities Limited, BNP Paribas, Credit Suisse Securities (India) Private Limited, IIFL Securities Limited, Jefferies India Private Limited.

The issue’s registrar is Link Intime India Private Limited.

Reservation of MobiKwik IPO for various investor categories

  • 10% is the maximum subscription amount reserved for retail investors.
  • 15% is reserved for the Non-Institutional bidders (NII).
  • 75% is reserved for the Qualified institutional buyers (QIBs), wherein 60% is for anchor investors, 1/3rd of which is reserved for domestic mutual funds only.

Objects of the MobiKwik IPO

  • Investing in projects for organic growth.
  • Inorganic growth funding.
  • General business reasons.

Financials of MobiKwik

  • As of 31 March 2021, the net asset value (NAV) stood at Rs. 3.88.
  • As of 31 March 2021, it has posted negative earnings per share (EPS) of Rs. 22.18.
  • As of 31 March 2021, the company’s total income was at Rs. 302.25 cr.

Following are the financials for 2019, 2020, and 2021

Peer comparison

As per the offer documents, MobiKwik believes none of the listed companies in India is engaged in a portfolio of business similar to theirs.

Strengths of the company

  • A strong synergy exists across the business network, benefiting all participants
  • The bulk of users were added organically, with a minimal customer acquisition cost (CAC)
  • Technology-powered, innovation-driven corporation with strong consumer brand identification and recall across the country

Risks of MobiKwik IPO

Investments in equities and equity-related securities are risky. Before making an investment in an IPO, investors should carefully consider the risk factors.

  • Failure to maintain or develop the IT infrastructure may have a negative impact on the company and prospects.
  • Failure in attracting merchants to its ecosystem, growing relationships with existing merchants, and increasing transaction volumes on its platforms may adversely affect its operations, financial condition, cash flows, and prospects.
  • It faces substantial and increasingly intense competition in the fintech industry. If it is unable to compete effectively, its business, financial condition, results of operations, and prospects would be materially and adversely affected.
  • It has a history of losses, including in FY 2019, 2020 and 2021. If loss were to continue to increase, especially if it continues to grow at an accelerated rate, it may be unable to achieve profitability for the foreseeable future and its business and financial condition may get adversely affected.

Prospects of the company

MobiKwik is a provider of an independent mobile payment network intended to offer comprehensive and easy online monetary transactions. If you are interested in this investment opportunity, make sure to conduct thorough research before subscribing to this IPO. To ensure a pleasant experience while subscribing to an IPO, read the article on how to subscribe to an IPO.

These numbers/figures mentioned in this article are sourced from DRHP, the data from RHP will be updated subsequently as and when released.

Ayushi Mishra
guest
0 Comments
Inline Feedbacks
View all comments
55,00,000+ users trust Tickertape for Investment Analysis!
55,00,000+ users trust Tickertape for Investment Analysis!
55,00,000+ users trust Tickertape for Investment Analysis!
55,00,000+ users trust Tickertape for Investment Analysis!

The blog posts/articles on our platform are purely the author’s personal opinion and do not necessarily represent the views of Anchorage Technologies Private Limited (ATPL) or any of its associates. The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, please consult a professional financial or tax advisor. The content on our platform may include opinions, analysis, or commentary, which are subject to change, without notice, based on market conditions or other factors. Further, the use of any third-party websites or services linked on the website is at the user's discretion and risk. ATPL is not responsible for the content, accuracy, or security of external sites. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The examples and/or securities quoted (if any) are for illustration only and are not recommendatory. Any reliance you place on such information is strictly at your own risk. In no event will ATPL be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

By accessing this platform and its blog section, you acknowledge and agree to the Terms and Conditions of this website, Privacy Policy and Disclaimer.