MobiKwik IPO Attracts Record Demand, Subscribed 119 Times: Strong Response from All Investor Categories

The initial public offering (IPO) of One MobiKwik Systems has received an overwhelming response from investors, with the issue subscribed a massive 119.38 times. The IPO, which opened on December 11, 2024, and closed on December 13, 2024, saw bids for 141.73 crore shares, far surpassing the 1.19 crore shares on offer.

Investor interest was particularly strong across all categories. Retail Individual Investors (RIIs) oversubscribed their portion by 134.67 times, while Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs) subscribed 119.50 times and 108.95 times, respectively.

The MobiKwik IPO had a price band set between Rs 265 and Rs 279 per share, with the fresh issue aiming to raise Rs 572 crore by issuing 2.16 crore shares at the lower price band and 2.05 crore shares at the upper price band. The funds raised will be used for several strategic purposes, including providing default loss guarantees (DLG) to lending partners, investing in consumer acquisition, strengthening technology teams, and expanding its network of merchants.

Strategic Use of Proceeds

• Rs 150 crore will be allocated to provide default loss guarantees (DLG) to lending partners, in compliance with new guidelines for lending service providers (LSPs).
• Rs 35 crore will be used to pre-fund escrow and biller accounts for instant settlements.
• Rs 100 crore will be invested in acquiring new consumers within the digital payments ecosystem.
• Rs 27.8 crore will strengthen teams focused on data, machine learning (ML), and artificial intelligence (AI).
• Rs 79.2 crore will be used to bolster product and technology teams.
• Rs 70.285 crore will be spent on hardware, including POS machines and sound boxes, to expand its network.

Company Overview

Founded in 2008, MobiKwik is one of India’s leading fintech companies, offering a range of services from digital payments to credit services and peer-to-peer lending. The company’s flagship product, the MobiKwik Wallet, has evolved into a comprehensive digital financial platform that includes MobiKwik ZIP (EMI), MobiKwik Wallet, UPI, and Zaakpay for payments, as well as MobiKwik Xtra for P2P lending.

As of June 2024, MobiKwik has a user base of over 161 million registered users and enables 4.26 million merchants to accept payments both online and offline. The company holds a 23.11% market share in the PPI wallet gross transaction value (GTV), making it the largest wallet player in India.

Financial Performance

For the quarter ended June 30, 2024, MobiKwik reported a consolidated net loss of Rs 6.62 crore, with a revenue of Rs 342.27 crore.

Anchor Investor Interest

Prior to the public subscription, the company raised Rs 92.25 crore from anchor investors, allotting 257.40 crore shares at Rs 279 per share to 21 anchor investors.

Post-IPO Promoter Shareholding

The promoters’ shareholding in the company will dilute to 25.2% post-IPO, from 34.2% pre-IPO.

MobiKwik’s strong IPO subscription reflects high investor confidence in its ability to maintain growth and capture a larger share of India’s digital payments and fintech markets. With the funds raised, the company plans to further strengthen its technology and consumer base, positioning itself for future success in a rapidly growing sector.