Mobikwik IPO Detail Information

Mobikwik IPOMobikwik IPO: Mobikwik commenced operations in 2009 with the MobiKwik Wallet to allow customers could deposit money into the mobile wallet and then use the wallet to pay utilities in one click. Through the years, Mobikwik mobile wallet use instances have expanded to include, for instance shopping on e-commerce and petrol pumps, food delivery as well as large chain stores and pharmacies. The vast merchant network they have is comprised of mobile apps and websites which include MobiKwik Wallet can be used as an option to pay in the checkout area as also in physical retail stores and where the MobiKwik Wallet can be used as an option for payment via QR code at the point of sale (“POS”)or cashier. The platform also allows peer-to-peer payments through a unified pay-per-click (“UPI”), MobiKwik Wallet, and MobiKwik Wallet to bank transfers. At the time as of March 31st, 2021, Company had more than 101.37 million registered users as well as greater than 3.44 million physical, eCommerce, merchants, and biller partners.

BUSINESS SEGMENTS:
The company’s business operations are divided into three distinct business segments:

  1. Buy Now Pay Later (BNPL) Segment;
  2. Consumer Payments (MobiKwik Wallet);
  3. Payment Gateway (Zaakpay).

Names of Promoters:

  • Bipin Preet Singh
  • Upasana Rupkrishan Taku
  • Koshur Family Trust
  • Narinder Singh Family Trust.

Mobikwik Company Financials:

The following table will provide a Summary of consolidated financial information.

ParticularsAs of and for the Fiscal ended (in ₹ million)
March 31, 2021March 31, 2020 March 31, 2019
Total Assets 4,231.393,379.363,350.84
Total Liabilities4,431.523,687.883,366.57
Total Revenue 3,022.563,698.541,602.32
Profit After Tax - 1,113.00 - 999.20- 1,479.73
Total borrowings605.93764.66864.32

Mobikwik IPO Information:

IPO Opening DateNA
IPO Closing Date NA
Issue Sizeaggregating up to ₹1,900.00 Cr
Fresh Issueaggregating up to ₹1,500.00 Cr
Offer for Sale aggregating up to ₹400.00 Cr
Issue Type Book Built Issue IPO
Face Value ₹2 per equity share
Price Band₹. to ₹. per equity share
Market Lot NA
Min Order Quantity NA
Listing at ExchangesBSE & NSE

Objects of the Issue:

  • Funding organic growth initiatives
  • Funding inorganic growth
  • General corporate purposes

Mobikwik IPO Time Table:

IPO Open Date NA
IPO Close Date NA
Basis of Allotment Date NA
Initiation of Refunds NA
Credit of Shares to Demat Account NA
IPO Listing Date NA

Mobikwik IPO Lot Size:

The market lot size is _ shares. A retail-individual investor can apply for up to _ lots (_ shares or ₹_).

 LotsSharesAmount (Cut-off)
MinimumNANANA
MaximumNANANA

Mobikwik IPO Subscription status:

CategoryShares Offered Percentage (%)Subscription (times)
Qualified Institutional Buyers (QIB)
--NA
Non Institutional Investors (NII)
--NA
Retail Individual Investors (RII)
--NA
Employee --NA
Total --NA

MobiKwik business:

  • MobiKwik is a fintech business that is one of the biggest Mobile wallets (MobiKwik the Wallet) as well as Purchase Now Pay Later (“BNPL”) players in India based on the value of mobile wallets’ gross merchandise value (“GMV”) as well as BNPL GMV in the respective years, in Fiscal 2021 (Source: RedSeer Report). According to the report by RedSeer that India’s online transactional population has risen at a rate of around 15%, from around 180 million in Fiscal 2018, and more than 250 million in the fiscal year 2021.
  • Yet, India had only 30-35 million distinct credit card customers, which resulted in the lowest credit card usage of 3.5 percent (of all Indian population that is over 15 years old) in comparison to the major economies of the world, at the time at March 31st, 2021 (Source from the RedSeer report). MobiKwik has its sights set on meeting the lack of credit requirements of the rapidly growing online transactors by combining the ease of mobile payments in everyday life and the advantages of Pay Now pay Later (BNPL).
  • MobiKwik is a tech-driven company that operates in financial services and payments. MobiKwik utilizes the power of big data and analysis of data (including machine learning) to keep delighting users and merchants using the platform. MobiKwik started its operations in 2009 using the MobiKwik Wallet. It was designed so that users could deposit money into the mobile wallet and then pay utilities in just a click. In the past applications for mobile wallets have been expanded to include, including e-commerce ordering, food delivery, petrol stations, major pharmacies, and chain stores.
  • MobiKwik big merchant network comprises mobile apps and websites that use MobiKwik Wallet as a payment option. MobiKwik Wallet can be used as an option to pay in the checkout area as also in physical retail stores and where the MobiKwik Wallet can be used as an option for payment via QR code at the point of sale (“POS”)or cashier. MobiKwik platform also allows peer-to-peer payments using a unified pay interface (“UPI”), MobiKwik Wallet, and MobiKwik Wallet for bank transactions. At the time as of March 31st, 2021, the Company was home to more than 101.37 million registered users plus greater than 3.44 million physical merchants and biller partners.
  • To enhance their value proposition for merchants on the internet, MobiKwik introduced a payment gateway, Zaakpay, in 2012. Zaakpay lets online websites, as well as mobile apps, take the payment of their customers using various payment options, such as credit and debit cards mobile wallets, UPI, mobile wallets as well as net banking. In May of 2019, Zaakpay introduced MobiKwik Zip, it’s flagship BNPL product that has an eye on the Indian middle-class to enable the payment of everyday use.
  • MobiKwik Zip is focused on giving the majority of customers who are part of the uninsured Indian population their first taste of credit. On March 31, 2021, 22.25 million customers had been approved for MobiKwik Zip, and in the fiscal year, 2021 MobiKwik Zip users’ repeat rate was 79.19 percent.

Overall Business Strategy and Competitive Strength:

  • MobiKwik believes that their competitive advantages lie in the capability to (i) cross-sell, (ii) make use of the power of data science and technologies, and (iii) effectively manage the risk.
  • Consumer payments are the basis of BNPL. It is the uppermost point in the funnel by which MobiKwik gains new users who sign up on the platform to make payments on a daily basis. The data produced by these users as a result of these transactions is utilized to assess risk and for underwriting BNPL by using MobiScore.
  • Merchant networks also aid in the engagement of users in the case of BNPL and assist in cross-selling payment processors (Zaakpay). The synergies created and the complementary nature of companies add value to merchants, users as well as other partners, and enhance the capacity to profit from both the merchant and user network without significant extra costs.
  • MobiKwik believes that such network effects boost the longevity and loyalty of merchants as well as users and create a virtuous interlinked cycle.

MobiKwik Strength:

  • The strong network effects resulted in an increase across all industries
  • Largely active user base, with moderate CAC
  • MobiKwik is a reputable brand that is well-known by consumers throughout India
  • Technology and the product first method of business

Risk factors:

  • If MobiKwik cannot attract new customers or merchants and maintain and build relationships with current merchants or users, their results of operations, business financial position, as well as future prospects could be significantly and negatively affected.
  • Security attacks and breaches against the platform and any possible violation of or inability to protect private, confidential, and proprietary information could harm the reputation and significantly and adversely impact financial and business performance and the results of operations
  • Statutory Auditors and the previous auditors who were statutory have been able to include an exclusion, emphasis on things, and a substantial uncertainty regarding the running concern in their respective audit reports on the consolidated financial statements for Fiscals 2019 2020 and 2021 as required.
  • MobiKwik is facing significant and fierce competition in the fintech sector. If the company fails to compete effectively, the business performance, financial health, outcomes of operations, and future prospects could be significantly and negatively affected.
    financial requirements, as well as the planned implementation of Net Proceeds, have not been evaluated by any financial institution or independent authority, and management will have wide discretion in the deployment of Net Proceeds.
  • MobiKwik has a track record of losing money, which includes in the fiscal years of 2019, 2020, as well as 2021. If losses continue to grow, particularly in the event that growth continues at a faster rate it could be difficult for the business to make a profit for the near future, and this can negatively impact the business’s financial health.
  • MobiKwik utilizes Zaakpay’s service for consumer payments as well as BNPL segments. Any disruption in the services of Zaakpay could adversely impact the operation of the MobiKwik, which could result in negative consequences for the brand’s reputation, image and business operations, as well as financial health and outcomes of operations.
  • MobiKwik depends on search engines as well as mobile operating systems and marketplaces for applications to increase traffic to its platform and provide it to merchants and users. If MobiKwik cannot effectively work and receive favorable positions in these operating systems and engines and continue to receive high user or reviews from merchants and brand awareness, its usage could decrease and business performance, financials, and the results of operations may be negatively affected.
  • MobiKwik Relies on third-party providers to deliver quality and reliable products and services. any disruption or interfering with the services offered by these third parties may affect cash flow, financial condition, and operating results.
  • MobiKwik Investments in marketing and sales may not be able to draw attention to the platform and could not result in more transactions being completed on the platform.
  • If we fail to take action with fraud, fraudulent transactions and bad user experiences could be detrimental to businesses, and significantly reduce user and merchant confidence in and use of the platform.
  • Systems or business interruptions malfunctions could affect the accessibility of the platform, and the inability to keep up with the rapid advancements in technology in order to deliver new and unique products and services. This could result in a reduction in the usage of these products and services, which could negatively impact the financial situation and performance.
  • Failure to provide excellent support and maintain the highest level of satisfaction for users can cause problems for relationships with customers as well as merchants. It could negatively impact the financial health of a business, cash flow, and the outcomes of operations.
  • There are ongoing legal proceedings against the Company and one of its Subsidiaries, Zaak ePayment Services Private Limited. Any negative outcome in these proceedings could affect the reputation of the business, its financial performance, results of operations, and cash flow.
  • If the company is not able to cross-sell its wealth tech and insurance products, the ability to earn additional revenue from customers could be affected, which could negatively affect the business’s financial performance and the results in operations.
  • MobiKwik depends on banks, card issuers, and/or payment processors. Any changes on payment networks, bank fees, rules or practices could impact operating earnings, and failure to meet the requirements for payment processors may result in the suspension or termination of services that could detrimentally affect the business’s financial situation and the outcomes of operations.
  • MobiKwik has not yet obtained credit ratings, and they may not have access to funds to fund operations or the future growth of their business that could result in an adverse impact on the results of operations, business as well as financial conditions and cash flow, as well as the future outlook.
  • MobiKwik must conform to specific strict covenants in financing agreements. Non-compliance could lead to them being unable to draw down further, which can adversely impact the business, its results of operations as well as financial and cash flow.

MobiKwik STRATEGIES:

  • Make investments in data science products, technology, and product
  • The Increase use of BNPL in India
  • Enhance digital payments in India
  • Continuously focusing on growth that is profitable
  • Enhance Organic Growth by Strategic Acquisitions

Board of Directors:

NameDesignation
Bipin Preet SinghManaging Director and Chief Executive Officer
Upasana Rupkrishan Taku
Whole-time Director, Chairperson and Chief Operating Officer
Chandan JoshiWhole-time Director
Punita Kumar SinhaIndependent Director
Sayali KaranjkarIndependent Director
Navdeep Singh Suri Independent Director
Raghu Ram Hiremagalur Venkatesh
Independent Director

Mobikwik IPO Prospectus:

Download Mobikwik IPO DRHP

Mobikwik IPO Registrar:

Link Intime India Private Limited
C 101, 247 Park,
L.B.S. Marg, Vikhroli (West),
Mumbai 400 083
Maharashtra, India
Tel: +91 22 4918 6200
E-mail: mobikwik.ipo@linkintime.co.in
Investor grievance e-mail: mobikwik.ipo@linkintime.co.in
Contact person: Shanti Gopalkrishnan
Website: www.linkintime.co.in
SEBI Registration: INR000004058

Mobikwik IPO Lead Managers:

  • BNP Paribas
  • Credit Suisse Securities (India) Private Limited
  • ICICI Securities Limited
  • IIFL Securities Ltd
  • Jefferies India Private Limited

Registered and Corporate Office:

5th Floor, HUDA City Centre, Metro Station, Sector 29, Gurugram, Gurgaon, Haryana, 122 001
Contact Person: Rahul Luthra, Company Secretary, and Compliance Officer; Tel.: +91 (124) 640 9190;
E-mail: cs@mobikwik.com;
Website: www.mobikwik.com