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 OBJECTIVE

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

POSITIVE

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.

NEGATIVE

MobiKwik IPO DETAILS

Subscription Dates	Coming soon
Price Band	Coming soon
Fresh issue	NIL
Offer For Sale
Total IPO size
Minimum bid (lot size)	Coming soon
Face Value	INR per share
Retail Allocation	10%
Listing On	NSE, BSE

MobiKwik IPO TIMELINE

IPO Open Date
IPO Close Date
Basis Of Allotment Date	Not Announced
Initiation Of Refunds	Not Announced
Credit Of Shares To Demat ACcount	Not Announced
IPO Listing Date	Not Announced

So, how does MobiKwik IPO Fare in Terms of Financials?

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 Details

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.

	FY2019	FY2020	FY2021
Revenue	160.23	3,69.85	302.26
Expenses
Net income
Margin (%)

Data in Crore

FINANCIAL REVIEW

MobiKwik IPO VALUATIONS

	FY2019	FY2020	FY2021
Earnings Per Share (EPS)
PE ratio	–	–
Return on Net Worth (%)
ROCE (%)
EBITDA (%)
Net Debt/Equity
Book Value (NAV)

VALUATION REVIEW:

MobiKwik IPO – SWOT ANALYSIS

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

COMPETITIVE ANALYSIS: MARKET PEERS

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 GMP

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Grey market premium as on DD-MM-YYYY= Rs /Share
Grey market premium as on DD-MM-YYYY = Rs /Share

Disclaimer:

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