MobiKwik logo. File
| Photo Credit: Reuters

Digital wallet provider MobiKwik, listed last month, on Tuesday (January 7, 2024) reported a loss of ₹3.59 crore during the second quarter that ended September 2024 as against ₹6 crore standalone profit recorded in the same quarter a year ago.

This is the first quarterly announcement after One MobiKwik Systems Ltd. got listed on the bourses at a huge premium of 57.7% per share compared to its allotment price.

During the reporting quarter, total income of the company increased to ₹294 crore as against ₹207 crore at the end of September 2023, One MobiKwik Systems Ltd. said in a regulatory filing.

Total expenses also rose to ₹287 crore at the end of second quarter of the current fiscal as against ₹196 crore in the same quarter of the previous fiscal.

Driven by improvements in the contribution margin coupled with optimised costs, the company recorded EBITDA (earnings before interest, tax, depreciation and amortization) for the quarter at ₹7 crore, it said in a statement.

The company reported a net loss of ₹3.59 crore in Q2FY25 on account of continued investments in the business for the next growth phase, it said.

“The company continues to work on balancing growth and profitability, by increasing market share and launching innovative products,” Upasana Taku, executive director, One MobiKwik Systems Ltd., said.

 Mobikwik has reduced its IPO size from its earlier plans of ₹1,900 crore in 2021 to ₹700 crore in January this year to ₹572 crore now. File.
| Photo Credit: Reuters

The initial public offering (IPO) of fintech company One MobiKwik Systems got subscribed 7.3 times, receiving an overwhelming response from retail investors, on the first day of sale on Wednesday (December 11, 2024).

This is the second attempt by the Gurugram-based firm for the public issue following its first attempt in July 2021. Earlier, the company shelved its IPO plans and withdrew the draft papers due to unfavourable market conditions.

The share sale received bids for 8,68,26,031 shares, as against 1,18,71,696 shares on offer, as per data available on the National Stock Exchange (NSE).

The Retail Individual Investors (RIIs) part got subscribed 26.71 times, while non-institutional investors category received 8.97 times subscription, and the quota for Qualified Institutional Buyers (QIBs) received a mere 2 per cent subscription.

Mobikwik has reduced its IPO size from its earlier plans of ₹1,900 crore in 2021 to Rs 700 crore in January this year to ₹572 crore now.

MobiKwik MD and CEO Bipin Preet Singh cited improved financial performance and strategic adjustments behind the IPO downsizing, reflecting a more realistic valuation, based on the current market conditions.

“The company is sustainable and profitable, and we have recovered from our losses and we don’t require that much cash at this point of time and this has allowed us to reduce the IPO size significantly,” Singh told reporters at an event here.

MobiKwik’s IPO got fully subscribed within an hour of opening of the issue on Wednesday, with investors expressing confidence in the strong growth prospects of India’s thriving online payments market.

“We are confident that we will grow this business without cash burn, which has motivated our investors to invest in the company,” Singh said.

On Tuesday, One MobiKwik Systems said it garnered Rs 257 crore from anchor investors.

The ₹572-crore IPO will conclude on December 13.

The company has fixed the price band at ₹265-279 per share.

The public issue is entirely a fresh issuance of equity shares worth up to Rs 572 crore with no offer-for-sale (OFS) component.

Founded by Bipin Preet Singh and Upasana Taku, MobiKwik — the company’s flagship application — provides consumers access to various payment options and financial products in digital credit, investments, and insurance.

The company faces stiff competition from major players, including PhonePe, Paytm, Airtel Payments Bank, and Freecharge.

The digital payments firm reported a consolidated total income of Rs 890.3 crore in FY24, compared to ₹561.6 crore in FY23 and ₹543.2 crore in FY22.

It incurred losses amounting to ₹128.16 crore and ₹83.8 crore in FY22 and FY23, respectively. However, for 2023-24, the company posted a profit ₹14.08 crore.

The shares of the company will be listed on the BSE and the NSE.