One Mobikwik Systems shares climbed almost 8 percent on Tuesday, January 7 to its day’s high of ₹601.35 ahead of the company announcing its September quarter results.
Mobikwik is slated to announce its Q2 results today. This is the first time the company will announce quarterly results after its market debut. Shares of the company were listed on bourses on December 18, 2024, with a 58.51 percent premium over the IPO price of ₹279 on BSE at ₹442.25 apiece.
Currently, the stock is trading over 115 percent from its issue price.
Mobikwik financial performance
MobiKwik showcased a strong financial turnaround in FY24. The company reported a net revenue of ₹875 crore, a significant 62.2 percent jump compared to ₹539 crore in FY23. It also achieved profitability, recording a profit before tax (PBT) of ₹14 crore in FY24, reversing a loss of ₹81 crore in FY23.
A key highlight was the improvement in its EBITDA performance. The company reported an EBITDA of ₹22 crore in FY24, compared to a loss of ₹78 crore in the previous fiscal. The EBITDA margin stood at 2.5 percent in FY24, a substantial improvement from the negative margin of -14.4 percent in FY23. This turnaround underscores MobiKwik’s focus on cost optimization and efficient operations.
A Leader in Digital Financial Services
MobiKwik, founded in 2009 by Bipin Preet Singh and Upasana Taku, has grown into one of India’s leading digital banking platforms. The company offers an extensive suite of financial products tailored for both consumers and merchants. Its offerings include payments, digital credit, and investment solutions, making it a comprehensive platform for financial needs.
MobiKwik serves a vast network of 161 million registered users, catering to diverse payment needs such as utility bills, e-commerce shopping, food delivery, and retail purchases. It also has a strong merchant network of 4.3 million, spanning large retail chains, small businesses, and local mom-and-pop stores (kirana shops). This extensive reach has positioned the company as a preferred partner for digital payments across India.
The company commands a significant 23.11 percent market share in India’s PPI wallet segment by gross transaction value as of May 2024, establishing itself as the country’s largest wallet player.
MobiKwik’s IPO, valued at ₹572 crore, garnered exceptional interest, being oversubscribed 119 times. The overwhelming response was fueled by investor optimism regarding its profitability and the rapid growth of the digital payments sector. The capital raised through the IPO is being allocated to scale financial and payment services, bolster AI and machine learning capabilities, and enhance payment device infrastructure.
Notable stakeholders in the company include Bajaj Finance, one of India’s leading NBFCs, with a 10.27 percent stake, along with the Abu Dhabi Investment Authority (ADIA) holding 2.14 percent and American Express with 1.34 percent ownership. These strategic investments underscore strong institutional confidence in MobiKwik’s growth potential and its pivotal role in the digital payments ecosystem.
