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| A Complete Deep-Dive report on
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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.
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Peer Comparison (FY2023)
(In INR Crores)
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Valuation
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
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
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