MobiKwik Share: IPO, IPO GMP, Listing, Loan, Allotment Status, Company Profile [Today Finology]

MobiKwik is one of India’s most well-known companies in the fintech market in terms of digital payments and the BNPL market. Launched more than ten years ago, it has always been adapting to the development of the Indian market. In particular, once the company has launched its IPO, or Initial Public Offering, recently, the news spread across the country indicating the new stage in its development. This blog post will discuss multiple aspects of the company and encompass everything from its IPO to financial performance, future growth potential, and more.

About MobiKwik

The company was established in 2009 by Bipin Preet Singh and Upasana Taku with a vision to change how Indians handle and use mobile payments. Initially launched as a mobile wallet application, MobiKwik has slowly diversified its services to payment for utilities, mobile recharges, and shopping and recently has ventured into the BNPL (Buy Now Pay Later) space.

The company started small and operating only in India since then, and today it stands for one of the most prominent fintech platforms in the country. The subject has over 120 Million users and a strong network of more than 3 Million merchants. Hence MobiKwik is solving a crucial need of enabling users to go cashless and thus helping India move towards a cashless society.

The secret sauce as to why MobiKwik is different is that it is keen on innovating. Right from enabling secure payment solutions, to enabling credit access for customers through its BNPL solutions MobiKwik continues to be a pioneer fintech platform.

MobiKwik: IPO

Here is one of the biggest scoops for MobiKwik – its IPO was a significant step for the company and the entire Indian fintech market. In July 2021, MobiKwik announced it had submitted its DRHP with SEBI to offer ₹1,900 crore worth of its shares. However, due to unfavourable market conditions, the IPO was issued later.

Later in 2024, MobiKwik again planned to launch an IPO with SEBI’s nod for a ₹700 crore issue. Comprising a qualitatively different aspect, 100% of MobiKwik’s IPO was a fresh issue implying the company’s strategy of using the IPO funds to finance the various initiatives and discharge debt.

The IPO was listed to the market for subscription on December 11, 2024, the price band was fixed at Rs 265-279 per share. It was flooded with tremendous responses; be it retail, institutional or non-institutional investors. By the same end of the subscription period, the IPO was oversubscribed by 120 times.

• MobiKwik submitted a DRHP for a ₹1,900 crore IPO in July 2021 but delayed it due to market conditions.
• In 2024, MobiKwik planned a ₹700 crore IPO, consisting entirely of fresh issue shares.
• IPO opened on December 11, 2024, with a price band of ₹265-279 per share.
• Oversubscribed by 120 times.

MobiKwik: IPO GMP

Grey Market Premium or GMP is one of the vital parameters that set out the market sentiment towards an IPO. GMP is a measure of the pre-listing trading in shares, which is not countenanced by the official stock markets. For MobiKwik, the GMP before its listing was reported to be around ₹166.

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This implied a potential listing price of ₹445, representing a 59% premium over the upper end of the IPO price band. Such a strong GMP indicated heightened investor optimism, fuelled by MobiKwik’s growing market share in the digital payments and BNPL sectors.

• MobiKwik’s GMP (Grey Market Premium): Reported at ₹166 before listing, suggesting a potential listing price of ₹445 (59% premium over IPO price band).
• Investor Optimism: High GMP driven by MobiKwik’s expanding presence in digital payments and BNPL sectors.

MobiKwik safe for long-term investment?

Following MobiKwik’s IPO, there was massive expectation of the firm’s debut soon after it entered the market. The MobiKwik team had an equally good opening on December 18, 2024, listing on the National Stock Exchange (NSE) at ₹440, 58 per cent higher than the issue price.

After listing, the stock was very actively traded as it rose to ₹518 intraday. This performance put the company’s total valuation at around ₹40 billion ($474 million).

Experts stated that MobiKwik has tremendous room to grow in the sector in the next years since the company successfully established its position on the BNPL service. Although the stock has received positive market sentiments, analysts recommend investors review the management and its competitiveness index.

MobiKwik Upcoming Projects

The growth and expansion plans of MobiKwik are based on the innovation model fostered to enhance customer satisfaction. To maintain its competitive edge, the company is actively working on several exciting projects:

1. Expansion of BNPL Services: At the same time, MobiKwik intends to expand the BNPL services within its network to include more consumers. Through the decentralization of instant credit facilities, this company seeks to enable users to buy products they cannot afford.

2. Enhanced Financial Products: The identify includes partnerships with a minimum of banks and other financial institutions for them to sell products for instance insurance, mutual funds and loans.

3. Technology Upgrades: MobiKwik plans on using AI and ML to create customized financial solutions while also on the security front.

4. Global Expansion: MobiKwik is at present an India-based company, however, its core business idea is to expand to international markets with similar deficiencies in digital payment facilities.

MobiKwik: Revenue & Profit

MobiKwik has shown remarkable growth in its revenue and profitability metrics:

MobiKwik turned operationally profitable in terms of its EBITDA and PAT in FY24, which shows its strong position and strategy planning.

MobiKwik CEO: Bipin Preet Singh

The chief executive officer and co-founder of MobiKwik, Bipin Preet Singh is steadily pushing the company to greater heights. Being an engineer by education, Singh came up through the ranks to revolutionize the fintech industry and rise to the helm of the company.

Singh has a B.E. (Hons.) degree in Electrical Engineering from the Indian Institute of Technology (IIT) Delhi. Before joining MobiKwik he had worked with some of the big software companies. He also had a stint as a consultant in various multinational enterprises and seamlessly transitioned into the game of software development and business strategy. His journey into a successful entrepreneur started in the year 2009 when he realized the need to have a convenient mobile wallet.

Singh is an innovative and genuinely post-crisis CEO; Singh, a post-crisis leadership style. Over the years, with his leadership, MobiKwik has delivered and steered clear of the numerous constraints such as changes in policies and stiff market competition hence positioning itself in the fintech sector.

MobiKwik Share: Listings

MobiKwik had its shares traded on BSE and NSE on 18 December 2024. On the NSE the shares began trading at ₹440, three-and-a-half times the issue price of ₹279, evidencing investors’ appreciation of the company. The listing has been acknowledged successful market debut towards public markets where the company has transformed its value to around $474 million at the opening of the company’s trading.

Top Secure Payment Wallets in India

India has one of the most secure and easy-to-use digital wallet spaces filled with options currently. Here are some of the top contenders:

1. Paytm: The Company was at the forefront of digital payment companies in India and boasts services covering mobile and other digital recharges and even financial service products.

2. PhonePe: PhonePe for instance has benefited from Walmart and offers hassle-free payment solutions with many merchants in the market.

3. Google Pay: As a member of the UPI platform, Google Pay has a plain and user-friendly pattern for P2P and bill payment transactions.

4. Amazon Pay: Being connected with the Amazon environment, it provides fast payments and shopping experiences. Over the years, introducing features such as bill payments, and cash-back offers, it has obtained much popularity.

5. MobiKwik: Well known for its security and ease of use – MobiKwik has Buy Now Pay Later (BNPL) capabilities along with a large base of merchants to gain the edge to be considered as one of the leaders in the digital payment sector.

Below is a comparison table of the top payment wallets in India:

Does RBI approve MobiKwik?

Indeed MobiKwik is RBI compliant and for that, the Reserve Bank of India has approved it. Currently, the company features as a Prepaid Payment Instrument (PPI) service provider thus functioning under the regulations provided for under the RBI guidelines. It guarantees that all transactions of the site’s users and their other information are processed safely and meet the highest standards of regulation.

Is MobiKwik a Profitable Company?

The operational performance of MobiKwik has revealed considerable growth in the years 2023-2024 with the establishment of the company’s profitability. This company showed its profit margins at both the EBITDA and PAT bases. This achievement depicts that MobiKwik has been running properly and the company can expand its products properly.

Who Invested in MobiKwik?

MobiKwik has attracted investments from several renowned entities, including:

1. Sequoia Capital: A premier firm that mainly specializes in providing venture capital for technology-based new business ventures.
2. Bajaj Finance: A strategic investor congruent with MobiKwiks’ financial services plan.
3. American Express: Strengthening MobiKwik’s payment network capabilities.
4. Cisco Investments: Supporting MobiKwik’s technological advancements.
5. Tree Line Asia: A prominent Asian hedge fund.

Below is a table summarizing MobiKwik’s key investors and their contributions:

What is the ₹60000 Loan given by MobiKwik?

It has also added the Buy Now Pay Later (BNPL) which gives consumers credit of up to ₹60,000 on the spot. This credit can be used by users to purchase products online, pay bills, make other financial transactions, etc. This is an available service through its app and users will always enjoy flexible repayment terms for borrowed funds.

This blog also discussed its path of transformation, IPO management, growth, and how MobiKwik revolutionised the digital payment system in India. MobiKwik has proved it knows the industry through its portfolio and excites and the next steps it has mapped out as it grows its operation in the industry incrementally.

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