January 16, 2024

Altius Investech 's Analysis on Mobikwik

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A Complete Deep-Dive report on

About The Company
  • Mobikwik is one of the largest Buy Now Pay Later (BNPL) fintech and mobile wallets in India.
  • They are focused on addressing the unmet credit needs of the fast-growing digitally paying users by combining the convenience of everyday mobile payments with the benefits of BNPL.
  • Founded in 2009 by Bipin Preet Singh and Upasana Taku, they commenced operations as a mobile wallet to make digital payments convenient for their users.
  • Their use has since then expanded to include bill payments, e-commerce shopping, food delivery, payments at petrol pumps, large retail chains, pharmacies, Kirana stores, etc.
Major Milestones
  • 2008 : Company was incorporated
  • 2009 : Started payment wallet operations
  • 2010 : Incorporation of Zaak epayments services for payment gateway
  • 2015 : Launched MobiKwik wallet as a payment option for organized and un-organized retail stores
  • 2019 : Launched BNPL and received authorisation to operate as Bharat Bill Payment Operating Unit
  • 2020 : Launched MobiKwik Blue American Express Card in partnership with American Express
  • 2022 : Entered into partnership with VISA to launch a prepaid card
Product Portfolio
Mobikwik provides access to various payment use cases as well as financial products in the Digital Credit, investments, and insurance verticals.
Payment Services Products:
  • Recharge and bill payments
  • Payments at online e-commerce merchant, organised retail and fuel pumps
  • Transferring money to any other phone number, contact, UPI ID or bank account
Digital Credit products:
  • MobiKwik ZIP: Pay-later product with a 30-day interest free credit line
  • ZIP EMI: Personal loan that is required to be repaid in instalments.
Investment Products:
  • Lens: Personal financial management
  • Xtra: Alternative Investment product
  • Distribution of Mutual funds and Digital Gold
Other Services:
  • Online checkout for e-commerce merchant
  • Scan and pay with Kwik QRs
  • MobiKwik Vibe (Soundbox)
  • MobiKwik EDC Machine
  • Merchant Cash Advance
Revenue Split
Revenue from Financial Services:  INR 285 Cr (51%)
Revenue from Payment Services:  INR 254 Cr (45%)
Revenue from Other Services:  INR 22 Cr (4%)
  • The company experienced overall growth in total income, driven by a significant increase in revenue from financial services.
  • Company witnessed a growth of 191% in financial services due to increased focus on distribution of financial services (primarily through MobiKwik ZIP and ZIP EMI products)
  • The decline in revenue from payment services was primarily on account of modes of payments skewing towards lower payment processing cost modes, as well as the suspension of their payment gateway business in FY-23
  • Other income also saw a substantial increase due to higher interest income from bank deposits.

Peer Comparison (FY2023)
(In INR Crores)

Mobikwik Peer comparison

Funding Details

Mobikwik Funding Details
Paytm is trading currently at a P/S ratio of 5.1x
At CMP (16th January) of Rs 640/sh Mobikwik is at a P/S of 6.2x
Thus the current share price for Mobikwik is trading 35% higher. Such valuations will be very steep for an investor to enter, and thus it might be best to let the prices cool off before investing.
IPO Plans
  • In July 2021, the company filed for a Rs 1,900-crore IPO but the plans were shelved following mixed market sentiments for new-age companies back then
  • After scrapping its IPO plan in July 2021, MobiKwik has again filed papers for an initial share sale to raise up to ₹700 crore
  • The issue size is reduced by 63% from earlier in the current prospectus to Rs 700 crore and no existing investors will sell their shares under the latest IPO plans
Price History in the Unlisted Space
Mobikwik's unlisted shares got introduced to the private equity market at Rs.1300/sh. They last raised fund from Bennette Coleman & Company Limited in December'2021 at Rs.1100/sh. Due to the downfall in share price of Paytm and low liquidity in the market the share prices of Mobikwik touched a low of Rs.350/sh.
With the news of the IPO, liquidity of the shares increased and the prices have recently gone up to Rs.640/sh
Mobikwik Price graph
Know More
In case you want any personal assistance, you can reach out to us at +918240614850 or support@altiusinvestech.com
Altius Investech P Ltd
73A, G.C Avenue
2nd Floor Room No - 204
Kolkata - 700013
+91 82406 14850

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