The issue size of the MobiKwik IPO will be Rs. 1900 crore, consisting of a fresh share offering of up to Rs. 1500 crore, according to the DRHP submitted to SEBI. Additionally, the promoters and other shareholders will make a 400 crore rupee offer for sale as part of the IPO. With this planned IPO, the company aims to raise about $1 billion in valuation. 75% of the IPO shares will be distributed to qualified institutional buyers, while 15% and 10% of the shares will be distributed to non-institutional and retail investors, respectively.
One of the top mobile wallet and Buy Now, Pay Later (BNPL) service providers is MobiKwik. By making routine mobile payments easier and extending the advantages of BNPL, it has gained widespread acceptance. A further objective of the digital payment corporation is to serve the credit needs of the constantly expanding online consumer base. On this platform, services like peer-to-peer payments via UPI, MobiKwik Wallet, and MobiKwik Wallet to bank payments are offered. In order to make accepting and sending money
To make online simpler, MobiKwik also introduced Zaakpay, a subsidiary payment gateway, and MobiKwik Zip, a flagship BNPL solution.
MobiKwik IPO Objectives
- to prepay or repay the company’s outstanding borrowings, either fully or partially.
- Meeting organic or inorganic growth initiatives
- to address corporate objectives.
MobiKwik IPO Financials
| Financial year | Total Revenue | Total Revenue | Profit after tax |
|---|---|---|---|
| 2018-19 | 160.23 Cr. | 335.08 Cr. | 147.97 Cr. |
| 2019-20 | 3,69.85 Cr. | 337.94 Cr. | 99.92 Cr. |
| 2020-21 | 302.26 Cr. | 423.14 Cr. | 111.30 Cr. |
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, is expected to surge in the upcoming years, investing in the MobiKwik IPO could prove useful in the long run.
Know before investing
Strengths
- MobiKwik extends innovative products to its customer base. For example, MobiKwik offers instant small-ticket loans, EMI payment options, and insurance policy coverage besides regular online bill payment and recharge.
- An increase in inflationary levels, and a slowdown in economic growth can increase volatility in the financial market. In turn, it could stagnate the company’s growth.
- Intense competition in the fintech space exposes MobiKwik to the constant fear of losing market shares to its peers. With newer offerings and a better customer experience, MobiKwik’s competitors could eat into the company’s existing customer base.
- Changes in domestic laws regarding taxation or legal compliance could impact MobiKwik’s plans negatively.
Risks
- Lack of regulations against online fraud increases the threat of security breaches and cyberattacks. This poses a potential threat to the company’s reputation.
- Irregularities in compliance with RBI, system failure and the inability to cross-sell insurtech could emerge as big challenges.
- This could hamper its ability to access growth capital and keep its cash flow stream continuous.
MobiKwik IPO FAQs:
Q1. What is MobiKwik IPO?
Ans. 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.
Q2. When will MobiKwik IPO open?
Ans. MobiKwik IPO will open sometime in September 2021.
Q3. What is the minimum lot size for retail investors?
Ans. The minimum lot size for retail investors is yet to be announced. We’ll update the page once the issuer makes the details public.
Q4. When is MobiKwik IPO listing date?
Ans. The MobiKwik IPO listing date is still not known. Once it is announced, we’ll update the same.
Q5. How will I receive the MobiKwik IPO?
Ans. Retail investors will receive MobiKwik IPO shares into their Demat account directly once the allotment is complete.
Q6. Which entities have been appointed as merchant bankers for this IPO?
Ans. MobiKwik has appointed ICICI Securities, IIFL Securities, Credit Suisse Securities (India) Private Limited, Jefferies India and BNP Paribas as its merchant banker.
Q7. Does MobiKwik IPO have a reservation for company employees?
Ans. Yes, MobiKwik IPO will have a reservation for the company’s employees.
Q8. Who is the registrar of MobiKwik IPO?
Ans. Link Intime India Private Ltd is the registrar for this upcoming IPO.
Q9. Who are the investors of MobiKwik?
Ans. MobiKwik’s investors include Bajaj Finance, Tree Line, Sequoia Capital India and Amex and Cisco.
Q10. Which entities are offering shares through MobiKwik IPO?
Ans. 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.
