| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹ 265 to ₹ 279 | 53 | 11th Dec, 2024 – 13th Dec, 2024 | ₹ 572.00 Cr |
About One MobiKwik Systems Ltd IPO
MobiKwik was founded by Bipin Preet Singh and Upasana Taku, who have an experience in building scalable technology and financial products. The company aims to leverage technology as the primary factor in facilitating financial inclusion for the underserved population in India. At its core, One MobiKwik Systems Ltd. (MobiKwik) is a two-sided payments network with 16.1 crores registered users and 0.4 crore merchants as of June 24. The company operates in two distinct business segments: i) Payment business, where it empowers consumers and merchants across the country to make daily life payments conveniently via the MobiKwik app, and ii) Financial service business, where it provides accessible and affordable small-ticket credit for all manners of spending through MobiKwik ZIP and ZIP EMI. As of June 24, MobiKwik had 7.1 crores of KYC-completed users on its MobiKwik Wallet platform and 3.4 crores of pre-approved users on its MobiKwik ZIP platform. The company’s product portfolio includes services such as online checkout for e-commerce merchants, “Scan and Pay” with Kwik QR, MobiKwik Vibe (a sound box solution), the MobiKwik EDC machine, and Merchant Cash Advance. MobiKwik has also developed offerings like MobiKwik ZIP and ZIP EMI for consumers following collaborations with lending partners and Merchant Cash Advance solutions specifically for merchants. The company partners with lending partners and financial institutions such as scheduled banks and non-banking financial companies to distribute credit products to consumers. All such products provided by the company’s lending partners are on their books. The company has partnered with SBM Bank India to offer fixed-deposit-backed credit cards catering to individuals with limited or no credit history.
Objective of the One MobiKwik Systems Ltd IPO
The company proposes to utilize net proceeds towards funding the following objects:
- Funding growth in the financial services business ;
- Funding growth in the payment services business;
- Investment in data, ML, AI, product and technology;
- Capital expenditure for the payment devices business;
- General corporate purposes.
Rationale To Invest In One MobiKwik Systems Ltd IPO
A large and engaged consumer base acquired with low CAC
The company’s registered users grew to 155.84 million as of March 31, 2024 from 123.56 million as of March 31, 2022, registering a CAGR of 12.3%. The company had 161.03 million registered users as of June 30, 2024. The company primarily acquire users through the following:
- SEO (search engine optimization) and mobile ASO (application store optimization) initiatives;
- user referrals from a large user base;
- brand recall from checkout and POS placement in diversified merchant network;
- high usage of the BBPS platform; and
- marketing and publicity.
This has enabled the company to maintain a low CAC per new registered user at Rs. 32.87 in Fiscal 2024 and Rs. 33.53 in the three months ended June 30, 2024. The company believes that using a platform for access to promotions, discounts, and SuperCash loyalty rewards can effectively engage consumers and strengthen company retention.
Efficient operational management of loan products positions for better risk navigation
The company excels in managing operational costs for digital credit products, showing consistent declines over the past three financial years while simultaneously increasing total credit disbursement. This trend highlights the company’s commitment to responsible lending. Despite a challenging financial landscape, the company has effectively navigated risks, significantly reducing lending-related costs. Lending-related expenses as a percentage of total credit disbursement dropped from 7.2% in FY22 to 3.3% in FY24, illustrating the company’s robust risk management and data-driven approach. This reduction instils confidence in the company’s lending partners, leading to larger lending limits and enhancing the resilience of the company’s digital credit products. Overall, the company has successfully balanced risk mitigation with increased credit disbursement, showcasing its capacity for sustainable growth.
Valuation of One MobiKwik Systems Ltd IPO
MobiKwik is a two-sided payments network with 16.1 crores registered users and 0.4 crore merchants as of June 24. The company aims to leverage technology as the primary factor in facilitating financial inclusion for the underserved population in India. The company ranked third on the registered number of wallet users, which amounts to 135.41 million users as of FY24. MobiKwik enables consumers to pay utility bills, such as mobile recharges, electricity, and credit card dues, as well as make purchases at both online and offline merchants, including retail stores and fuel stations. With features like money transfers to phone numbers, UPI IDs, or bank accounts, bank balance checks, and QR-based payments via UPI or RuPay credit cards, the platform ensures convenience and accessibility for users. The digital payments are on a growth trajectory, as the value of digital transactions stood at USD 30 trillion in FY24, growing at a CAGR of 19% between FY21 and FY24. The value of transactions is further expected to grow at a CAGR of 22% between FY24 and FY28 to reach USD 60-70 trillion by FY28. At the same time, the value of Mobile Wallet Payments stood at USD 29 billion in FY24 and is expected to grow at a CAGR of 20-25% between FY24 and FY28 to reach USD 65-75 billion by FY28. On the financial front, the company delivered a total income of Rs. 3,458.29 million, demonstrating a CAGR of 28% from FY22 to FY24. PAT stood at Rs.140.79 million, and the EBITDA margin improved from (21.24%) in FY22 to 4.18% in FY24. The company became profitable at the EBITDA and PAT levels in FY24. Further, the company’s Payment GMV grew at an annual rate of 45.9%, and MobiKwik ZIP GMV (Disbursements) grew at an annual rate of 112.2% between FY22 and FY24. The issue is valued at a P/E of 113x on the upper price band based on FY24 earnings, which is expensive. However, given the company’s strong market presence, improved financial performance, and industry tailwinds, we recommend a “SUBSCRIBE” rating for the issue.
What is the One MobiKwik Systems Ltd. IPO?
Mobikwik IPO is a book built issue of Rs 572.00 crores. The issue is entirely a fresh issue of 2.05 crore shares. Login to your account now.
How to apply for the One MobiKwik Systems Ltd. IPO through StoxBox?
To apply for the One MobiKwik Systems Ltd. IPO through StoxBox one can apply from the website and also from the app. Click here
When will the One MobiKwik Systems Ltd. IPO open?
One MobiKwik Systems Ltd. IPO is opening on 11th December 2024. Apply Now
What is the lot size of the One MobiKwik Systems Ltd. IPO?
The Lot Size of One MobiKwik Systems Ltd. IPO is 53 equity shares. Login to your account now
When is the One MobiKwik Systems Ltd. IPO allotment date?
The allotment Date for One MobiKwik Systems Ltd. IPO is 16th December 2024. Login to your account now.
When is the One MobiKwik Systems Ltd. IPO listing date?
The listing Date for One MobiKwik Systems Ltd. IPO is 18th December 2024. Login to your account now
t is the minimum investment required for the One MobiKwik Systems Ltd. IPO?
In the Retail segment the minimum investment required is Rs. 14,787. Login to your account now
What is the maximum investment allowed for the One MobiKwik Systems Ltd. IPO?
In the Retail segment the maximum investment requirement is Rs. 192,231. Login to your account now
What are the risks associated with investing in the One MobiKwik Systems Ltd. IPO?
- The company faces regulatory risk as it must comply with regulatory procedures set by the RBI, as licenses and approvals can be suspended or revoked for non-compliance. Failure to adhere to regulations may result in increased costs, penalties, or operational disruptions.
- The company’s growth hinges on its ability to retain and attract customers, merchants, and lending partners. This is essential for increasing transaction volume and gross monetary value (GMV). Any failure to maintain or expand the network of consumers, merchants, or lending partners, or a decline in the number of registered users or revenue, could negatively impact the business, its operational results, and its financial health.
- The company faces significant and intensifying competition in the fintech industry, alongside mobile payment companies, payment service providers, and others offering similar technology or services. If it is unable to compete effectively, its business, financial condition, results of operations, and prospects will be materially and adversely affected.
When will the One MobiKwik Systems Ltd. IPO shares be credited to my Demat account?
The One MobiKwik Systems Ltd. IPO be credited to the account on allotment date which is 17th December 2024. Login to your account now
Where can I find the One MobiKwik Systems Ltd. IPO prospectus?
The prospectus of One MobiKwik Systems Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
What are the important dates related to One MobiKwik Systems Ltd. IPO?
| IPO Open Date | Wednesday, December 11, 2024 |
| IPO Close Date | Friday, December 13, 2024 |
| Basis of Allotment | Monday, December 16, 2024 |
| Initiation of Refunds | Tuesday, December 17, 2024 |
| Credit of Shares to Demat | Tuesday, December 17, 2024 |
| Listing Date | Wednesday, December 18, 2024 |
| Cut-off time for UPI mandate confirmation | 5 PM on December 13, 2024 |
