Mobikwik IPO

Mobikwik is a fintech firm that is among of India’s leading mobile wallets and Buy Now Pay Later (BNPL) providers. By mixing the ease of regular mobile payments with the advantages of BNPL, they want to meet the unmet credit requirements of the rapidly expanding online paying consumers. Mobikwik IPO will hit the market in September 2021.

About Mobikwik

They began business as a mobile wallet in 2009, formed by Bipin Preet Singh and Upasana Taku to facilitate digital payments simple for their consumers.

Bill payments, online shopping, food delivery, fuel pumps, major retail chains, pharmacies, kirana shops, and more utilize cases have subsequently been added to their list.

Peer-to-peer payments via universal payment interface (“UPI”), MobiKwik Wallet, and MobiKwik Wallet to bank payments are also possible on their platform.

Zaakpay

In 2012, they launched their payment gateway subsidiary Zaakpay to further strengthen their value proposition to their online businesses.

Zaakpay allows online businesses and mobile apps to accept payments from their customers using a variety of methods, such as debit cards, credit cards, mobile wallets, UPI, and net banking.

MobiKwik Zip

MobiKwik Zip, their flagship BNPL solution, was introduced in May 2019 with a target on the Indian middle-class audience to allow them to initiate payments for everyday use cases.

MobiKwik Zip aims to provide this under-served Indian people their first taste of credit.

Mission

They are a technology-first business that uses big data analytics and deep data science (especially machine learning) to satisfy their platform’s customers and merchants.

Their goal is to provide India with a world-class payment and credit solution!

Competitive Advantage and Business Model

The capacity to (1) cross-sell; (2) use data science and technology; and (3) efficiently manage risk are three of their main competitive advantages, according to them.

BNPL’s consumer payments business is the cornerstone of the company. It serves as the top of the channel for acquiring new users that come to their site to make everyday payments.

With MobiScore, the data provided by these users via their transactions is used to analyse risk and underwrite BNPL.

Their merchant network also assists BNPL in increasing user interaction and cross-selling their payment gateway (Zaakpay).

Growth strategy

Their BNPL section benefits from their client payments section (MobiKwik Wallet), which includes brand memory, a huge current KYC user base, massive data to assess customer creditworthiness, and a significant merchant ecosystem.

They think they have a solid foundation to expand the BNPL company in a scalable and successful way as an outcome of the essential building pieces being in place.

In Fiscals 2020 and 2021, they were profitable at the BNPL division results level (i.e. revenue minus direct costs).

Mobikwik IPO

Mobikwik, headquartered in Gurugram has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 1900 crore on 12 July,  2021.

They planned to collect INR 1900 cr via its initial public offering (IPO).  There is a fresh issue of 1500 cr. and offer for sale is around 400 Cr. Value Equity Shares mentioned in the drhp of the company.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Basic and Diluted Earnings Per Share (EPS)

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of The offer

The following are some of the qualitative considerations and Their strengths that go into determining the Offer Price:

• Network effects are significant, leading in growth across company verticals.
• A large, active user base with a modest cost of acquisition
• MobiKwik is a well-known retail name in India.
• A company model that focuses technology and products.

Mobikwik IPO Peer Comparison

There are no publicly traded firms in India with a range of products and services equivalent to theirs, or a scale of operations comparable to theirs.

Mobikwik IPO Details

Mobikwik IPO Tentative Date

Mobikwik IPO opening date is September 2021, and the closing date September 2021. The issue may list in September 2021.

Basis of Allotment

Mobikwik IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Mobikwik IPO.

Mobikwik IPO GMP

Mobikwik IPO Grey Market Premium is INR 0.

Mobikwik IPO Review

Mobikwik IPO Review will depend on Price band. Once the price band will be issued we will update the Review for this IPO.

Mobikwik IPO Risk

• The COVID-19 pandemic, as well as any future pandemic might have a significant and negative effect on their company and operations.
• If they are unable to acquire new customers or retailers, as well as keep and expand their current client or vendor connections, their business and results of operations would decline.
• Any possible exposure of or failure to otherwise secure individual sensitive, or confidential data, as well as cyberattacks against their system, might hurt their brand and substantially and negatively affect their business.
• In the fintech business, they face significant and growing competitiveness. Their business and financial situation will suffer if they are unable to compete successfully.

Other Threats

• In their respective auditors’ statements for Their annual report for Fiscals 2019, 2020, and 2021, as relevant, their Statutory Auditors and prior statutory auditors have included a qualifier, highlighting on matters, and a substantial doubt relating to going concern.
• Its finance needs and intended Net Proceeds deployment have not been evaluated by any bank, financial institution, or other independent body, and their management will have considerable discretion over how the Net Proceeds are used.
• They may not be able to continue their current growth rates, especially in their BNPL business, and past success may not be predictive of future results.

Mobikwik IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Mobikwik IPO Subscription Status

Promoters

1. Bipin Preet Singh
2. Upasana Rupkrishan Taku
3. Koshur Family Trust
4. Narinder Singh Family Trust

Promoter’s Holding

Mobikwik IPO Prospectus