Company Overview
One Mobikwik Systems Limited is a prominent player in the fintech industry, known for its innovative digital payment solutions and prepaid wallet services. Established in March 2008, the company has grown into a trusted platform, serving a vast network of over 161 million registered users and 4.26 million merchants across India.
Core Services Provided
Mobikwik delivers a comprehensive suite of services aimed at enhancing the digital payment experience and empowering customers with financial convenience:
- Utility Bill Payments: Facilitating mobile recharges, electricity bill settlements, and credit card payments.
- Versatile Transactions: Supporting purchases across online platforms, physical retail outlets, and fuel stations.
- Money Transfers: Enabling hassle-free transfers to mobile numbers, UPI IDs, or bank accounts.
- Banking Support: Offering features like balance inquiries.
- QR-Based Payments: Accepting payments via UPI or Rupay credit cards using QR codes.
Innovative Offerings
The company has introduced several cutting-edge products tailored to both consumers and merchants, developed through internal R&D and collaborations:
- MobiKwik ZIP & ZIP EMI: ‘Buy Now, Pay Later’ services offering flexible repayment plans.
- Merchant Cash Advance: Affordable financing options for merchants within its ecosystem.
- Kwik QR: A QR-based solution for accepting payments via UPI, wallets, cards, and pay-later options.
- MobiKwik Vibe: A soundbox delivering real-time audio notifications for payment confirmations.
- MobiKwik EDC Machine: A point-of-sale device for processing in-person payments.
- Online Checkout Solutions: Streamlining payment collection for e-commerce businesses.
Strengths
- A robust customer base of 161 million users and 4.26 million merchants.
- Diverse financial offerings, including digital credit, investment options, and insurance products.
- An efficient business model that maintains low operational costs and supports strong profitability.
Challenges and Risks
While the company enjoys numerous strengths, it also faces several challenges:
- Competitive Pressure: Intense rivalry from established players in the fintech sector.
- Regulatory Hurdles: Navigating complex and evolving regulations.
- Default Risk: Heavy dependence on digital credit could pose challenges.
- Scalability Issues: Effectively managing ecosystem growth and expansion.
Purpose of the IPO
The funds raised through the IPO are intended to be utilized for:
- Business growth and expansion.
- Capital expenditures.
- General corporate purposes.
Summary of Financial Information:
| Period Ended | 30-Jun-24 | 31-Mar-24 | 31-Mar-23 | 31-Mar-22 |
|---|---|---|---|---|
| Assets | 908.1 | 854.65 | 714.33 | 836.13 |
| Revenue | 345.83 | 890.32 | 561.12 | 543.22 |
| Profit After Tax | -6.62 | 14.08 | -83.81 | -128.16 |
| Net Worth | 216.54 | 142.69 | 162.59 | 158.65 |
| Reserves and Surplus | 147.21 | 151.15 | 131.26 | 205.1 |
| Total Borrowing | 206.34 | 211.7 | 192.27 | 150.91 |
Comparison with Listed Peers:
| Company Name | EPS (Basic) | EPS (Diluted) | NAV (per share) (Rs) | P/E (x) | RoNW (%) | P/BV Ratio |
|---|---|---|---|---|---|---|
| One Mobikwik Systems Limited | 2.46 | 2.38 | 28.43 | - | 8.66 | 9.96 |
| One 97 Communications Limited | -22.33 | -22.33 | 209.29 | - | -10.7 | 4.32 |
| Affirm Holdings Inc | -133.6 | 133.6 | 702.64 | - | -18.95 | 8.06 |
| PayPal Holdings, Inc | 308 | 307.2 | 1,570.97 | 22.17 | 20.17 | 4.34 |
Key IPO Details:
- IPO Dates: 11 to 13 December, 2024
- Price Band: Rs. 265 to Rs. 279 per share
- Lot Size: 53 shares
- Issue Size: Rs. 572 Crores (100% Fresh Issue)
- Retail Quota: 10%
- Listing Date: 18th Dec, 2024
- GMP: 40%+ (for informational purposes only)
Note: For additional information & risk factors please refer to the Red Herring Prospectus
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Disclaimer: We are not SEBI registered. All the views are personal and only for educational purposes. Do your due diligence before making any trading or investing decisions. The data provided in this blog post is for illustrative purposes only and does not constitute financial advice. Always consult with a qualified financial advisor before making investment decisions.
