Mobikwik IPO Company Profile :
One Mobikwik Systems Limited is a fintech company – one of the largest mobile wallets MobiKwik Wallet, and Buy Now Pay Later (“BNPL”) players in India, based on mobile wallet GMV (“Gross Merchandise Value”) and BNPL GMV, respectively, in Fiscal 2021. According to the RedSeer Report, India’s online transacting users have rapidly grown at a CAGR of approximately 15% from 180 million in Fiscal 2018 to over 250 million in Fiscal 2021. However, India had only 30-35 million unique credit card users resulting in a low credit card penetration of 3.5% compared to the world’s major economies, as of March 31, 2021. The company is focused on addressing the unmet credit needs of these fast-growing online transactors by combining the convenience of everyday mobile payments with the benefits of Buy Now Pay Later (BNPL).
One Mobikwik Systems Limited is a technology-first company operating in payments and financial services. The company leverages big data analytics and deep data science including machine learning to continuously delight users and merchants on its platform. The company’s business operations are divided into three distinct business segments:
- Consumer Payments Segment (MobiKwik Wallet):
MobiKwik Wallet is a mobile payments app, which provides its 101.37 million Registered Users as of March 31, 2021, a simple, fast, safe, and reliable way to pay. Users can fund their MobiKwik Wallet using various funding sources, including (i) savings from their bank account through debit card, net banking or UPI; (ii) credit through credit card and BNPL products; (iii) other pre-paid instruments, including gift cards, pre-paid cards and coupons; and (iv) peer-to-peer transfers, such as wallet-to-wallet or UPI. The company’s consumer payments segment strategy is to acquire a large set of users and create a large acceptance network for them so that they can pay with MobiKwik Wallet anywhere in India.
- Buy Now Pay Later (BNPL) Segment:
The Company’s BNPL products – MobiKwik Zip and Zip EMI, provide accessible and affordable small-ticket credit to middle-class Indians for daily life payments as well as discretionary spending. The company also cross-sell small ticket wealth tech, and insurance products to these users.
- Payment Gateway (Zaakpay):
Zaakpay is a payment gateway aggregator and offers end-to-end payment processing solutions to online merchants through an extensive choice of payment modes including debit and credit debit cards, UPI, net banking, mobile wallets, and BNPL credit. Zaakpay benefits from the large user base and merchant network of the platform, which provides a significant untapped opportunity for cross-selling the payment gateway service to online merchants of the MobiKwik Wallet, which include Uber India, IRCTC, Indiamart Intermesh, and 1MG Technologies.
Mobikwik IPO Revenue from operations:
| Segment | FY-21(in cr.) | % | FY-20(in cr.) | % | FY-19(in cr.) | % | CAGR (FY-19 to FY-21) |
| Consumer payments | 209.44 | 72.58% | 230.23 | 64.73% | 88.21 | 59.41% | 33.4% |
| Buy now pay later (BNPL) | 59.81 | 20.73% | 74.35 | 20.90% | 21.75 | 14.65% | 40.1% |
| Payment gateway | 19.32 | 6.70% | 51.10 | 14.37% | 38.52 | 25.94% | -20.5% |
| Total | 288.57 | 100.00% | 355.68 | 100.00% | 148.48 | 100.00% | 24.8% |
Mobikwik IPO Details :
| IPO Open Date | Not Available |
| IPO Close Date | Not Available |
| Listing Date | Not Available |
| Face Value | ₹2 per share |
| Price | Not Available |
| Lot Size | Not Available |
| Issue Size | [●] shares
(aggregating up to ₹1900.00 Cr) |
| Fresh Issue | [●] shares
(aggregating up to ₹1500.00 Cr) |
| Offer for Sale | [●] shares
(aggregating up to ₹400.00 Cr) |
| Issue Type | Book Built Issue IPO |
| Listing At | BSE, NSE |
| QIB Shares Offered | Not more than 75% of the Offer |
| NII (HNI) Shares Offered | Not less than 15% of the Offer |
| Retail Shares Offered | Not less than 10% of the Offer |
| Promoters | Bipin Preet Singh, Upasana Rupkrishan Taku, Koshur Family Trust, and Narinder Singh Family Trust |
Mobikwik IPO Financial Analysis:
| Particulars | FY-21(in cr.) | FY-20(in cr.) | FY-19(in cr.) | CAGR (FY-19 to FY-21) |
| Revenue from Operations | 2885.71 | 3556.75 | 1484.75 | 24.8% |
| Other Income | 136.85 | 141.79 | 117.75 | |
| Employee Cost | 530.31 | 656.89 | 569.02 | |
| Impairment of goodwill | 0.00 | 48.63 | 0.00 | |
| Other expenses | 3510.39 | 3839.39 | 2451.96 | |
| EBITDA | -1018.14 | -846.37 | -1418.48 | |
| EBITDA margin% | -35.28% | -23.80% | -95.54% | |
| Depreciation | 13.14 | 26.99 | 15.08 | |
| Interest | 71.35 | 107.14 | 78.21 | |
| Restated profit/ (loss) before tax | -1102.63 | -980.50 | -1511.77 | |
| Total tax | 10.37 | 18.70 | -32.22 | |
| Restated profit/ (loss) after tax | -1113.00 | -999.20 | -1479.55 | |
| PAT margin% | -38.57% | -28.09% | -99.65% |
Pre-Offer shareholding of the Selling Shareholders:
| S. No. | Name of the Selling Shareholder | No. of Equity Shares
held |
Percentage of the pre-Offer paid
Up equity share capital (%) |
|
| 1. | Bipin Preet Singh | 11,641,240 | 20.21% | |
| 2. | Upasana Rupkrishan Taku | 8,241,200 | 14.31% | |
| Total | 19,882,440 | 34.52% | ||
| Selling Shareholders (excluding Bipin Preet Singh and Upasana Rupkrishan Taku) | Selling Shareholders (excluding Bipin Preet Singh and Upasana Rupkrishan Taku) | |||
| 3. | American Express Travel Related Services Company, Inc. | 1,043,740 | 1.81% | |
| 4. | Bajaj Finance Limited | 7,979,440 | 13.86% | |
| 5. | Cisco Systems (USA) Pte. Ltd. | 1,200,760 | 2.08% | |
| 6. | Sequoia Capital India Investment Holdings III | 2,183,200 | 3.79% | |
| 7. | Sequoia Capital India Investments IV | 7,749,320 | 13.46% | |
| 8. | Tree Line Asia Master Fund (Singapore) Pte Ltd | 2,552,560 | 4.43% | |
| Total | 42,591,460 | 73.95% | ||
Mobikwik IPO Offer for Sale Details:
| S. No. | Name of the Selling Shareholder | Number of Equity Shares
being offered in the Offer for Sale (Up to) |
| 1. | Bipin Preet Singh | Of up to [•] Equity Shares aggregating up to ₹ 111.33 crores |
| 2. | Upasana Rupkrishan Taku | Of up to [•] Equity Shares aggregating up to
₹ 78.81 crores |
| 3. | American Express Travel Related Services Company, Inc. | Of up to [•] Equity Shares aggregating up to ₹ 9.98 crores |
| 4. | Bajaj Finance Limited | Of up to [•] Equity Shares aggregating up to
₹ 68.98 crores |
| 5. | Cisco Systems (USA) Pte. Ltd. | Of up to [•] Equity Shares aggregating up to ₹ 11.48 crores |
| 6. | Sequoia Capital India Investment Holdings III | Of up to [•] Equity Shares aggregating up to ₹ 20.87 crores |
| 7. | Sequoia Capital India Investments IV | Of up to [•] Equity Shares aggregating up to ₹ 74.11 crores |
| 8. | Tree Line Asia Master Fund (Singapore) Pte Ltd | Of up to [•] Equity Shares aggregating up to ₹ 24.41 crores |
Mobikwik IPO Strengths:
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One Mobikwik Systems Limited’s ecosystem connects end users, retail merchants, lending institutions, and other partners, generating attractive network effects benefiting all parties. As incremental users and merchants join MobiKwik’s ecosystem, additional benefits accrue to all parties, i.e. End users, Retail merchants, Lending partners, and other partners.
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One Mobikwik Systems Limited’s registered Users have grown at a CAGR of 25.70% from 64.16 million as of March 31, 2019, to 101.37 million as of March 31, 2021. In Fiscal 2021, 77.00% of the company’s Registered Users were added organically without any cost. This has enabled the company to reduce its already low CAC per New Registered User from ₹ 13.39 in Fiscal 2020 to ₹ 11.51 in Fiscal 2021. The convenience of using a platform, which also provides access to promotions, discounts, and its SuperCash loyalty rewards, is able to effectively engage its users and strengthen its user retention.
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One Mobikwik Systems Limited’s brand is synonymous with digital payments and its users associate it with comprehensive digital payments offerings. The company’s extensive physical retail and online merchant network across India as of March 31, 2021, was over 3.44 million, including over 3.37 million physical stores, 73,281 online merchants, and 283 billers.
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One Mobikwik Systems Limited’s robust data platform, supported by analytics, engineering, and data science teams, ensures that the company is able to run meaningful experiments supported by real retention and user lifetime value data. The machine learning-driven algorithms allow the company to optimize payment processing, tailor user experiences on the MobiKwik Wallet, predict risk in BNPL, and predict propensity to buy wealthtech and insurtech products.
Mobikwik IPO Risk Factors:
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If One Mobikwik Systems Limited is unable to attract new users or merchants, and retain and grow its relationships with its existing users or merchants, the business, results of operations, financial condition, and future prospects would be materially and adversely affected.
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One Mobikwik Systems Limited faces substantial and increasingly intense competition in the fintech industry. If the company is unable to compete effectively, the business, financial condition, results of operations, and prospects of the company would be materially and adversely affected
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One Mobikwik Systems Limited’s credit underwriting and risk management systems may not be able to effectively assess or mitigate the risks of BNPL credit enabled through its platform and the company may experience default in payment obligations, which could adversely affect the business, results of operations, and financial condition of the company
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One Mobikwik Systems Limited has a history of losses, including in Fiscals 2019, 2020, and 2021. In the event, the company’s loss continues to increase, especially if it continues to grow at an accelerated rate, the company may be unable to achieve profitability for the foreseeable future and it may adversely affect the business and financial condition of the company
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Any failure to maintain, protect and enhance One Mobikwik Systems Limited’s brand and reputation could have a material adverse effect on the business, financial condition, and results of operations of the company.
Objects of the Offer:
One Mobikwik Systems Limited proposes to utilize the Net Proceeds towards the following objects:
- Funding organic growth initiatives;
- Funding inorganic growth; and
- General corporate purposes.
One Mobikwik Systems Limited IPO Prospectus
- One Mobikwik Systems Limited IPO DRHP –
- One Mobikwik Systems Limited IPO RHP –
Registrar to the offer:
Link Intime India Private Limited
Contact Person: Shanti Gopalkrishnan
E-mail: mobikwik.ipo@linkintime.co.in
Tel: +9122 4918 6200
Mobikwik IPO FAQ
Ans.Mobikwik IPO will comprise fresh share issue and new offer share issue. The company aims to go public to accelerate its growth and expansion plan.
Ans. The company will open for subscription on <>.
Ans. The minimum lot size that investors can subscribe to is <> shares.
Ans. The Mobikwik IPO listing date is <>.
Ans. The minimum lot size for this upcoming IPO is <> shares.