MobiKwik, a digital payments provider, is looking for an investor to help launch its IPO in the next three years. The company was incorporated in 2009 and became a trusted name for facilitating online transactions. Mobikwik reported its first quarterly profit in March and became profitable in FY2021. Bipin Singh, Co-founder and Chief Executive officer of MobiKwik, said, “We are looking for investors who will help the company go for Initial Public Offering (IPO) in the next three years.”
He also confirmed that the company is in talks with multiple stakeholders but didn’t share any specific details regarding the type of investors. Being a public company and famous online payment provider for businesses and retail customers, MobiKwik’s unlisted shares are widely traded in the grey market and attract retail and institutional investors. Apart from this, there is also hype for its IPO among investors due to the massive issue size. This blog discussed why MobiKwik scouted for investors before its IPO launch.
Why Is Mobikwik Looking For Investors?
Filing a Draft Red Herring Prospectus (DRHP) with the Stock Exchange Board of India (SEBI) becomes difficult for start-ups and unicorns. There are various companies like OYO and Lava International whose IPO proposal was rejected or denied by the SEBI, and advising them to refile it with further updates and revisions. It becomes essential for MobiKwik to have investors who can assist it in preparing for the IPO and maintaining the balance sheet accurately.
For this, India’s one of the biggest online payment providers MobiKwik, scouts for its stakeholders. The company already counts on various shareholders like Sequoia Capital and Bajaj Finance. In Fiscal 2019, MobiKwik doubled its revenue to Rs 146.6 crore while competing with Top Players in Industries like Paytm. The decision to scout for stakeholders signifies the company’s intention to manage the IPO filing process efficiently.
1- Widens Its Customer Base
In the interview, the CEO and Co-founder of MobiKwik stated that the company is focusing on leveraging the existing customer base and extending its products and services. The company doesn’t have a lot of cash burn from online transactions to give rewards for high usage. Its higher investments may delay its profitability which can become an issue when filing an IPO with SEBI. Right now, MobiKwik’s main goal is to widen the customer base by providing more tailor-made products like a loan, micro-insurance, and investment services.
2- Double Down Its Insurance Selling Process
MobiKwik generally sells the insurance policies of the seven companies and aims to extend this number in the next few years. Various company experts also disclosed that there is a need for new funding to create more robust payment and insurance solutions that cover the general and health sectors. The new investor will also help MobiKwik get exposure to becoming a partner of government-based insurance schemes.
3- Strengthen Wealth Management Service
MobiKwik knows well that maintaining the business financially is extremely important to keep the balance sheet up to date. Onboarding the investor clearly indicates that the online payment provider wants to strengthen its wealth management services by boosting the sale of liquid funds. Bipin Singh clearly shared his views and said that “the liquid funds can be withdrawn before the lock-in period ends that gives investors fixed deposits. Thus, all the investments can be made with the help of the MobiKwik app.”
Why Investing In MobiKwik Unlisted Shares A Great Deal?
MobiKwik is India’s leading fintech company that provides online payment services in the form of MobiKwik Wallet and Buy Now and Pay Later (BNPL) based on mobile wallet merchandise value. It allows people and businesses to pay or receive online transactions with the complete security of financial data.
In 2012, MobiKwik launched its payment gateway Zaakpay to enhance its service for online merchants. It allows users to collect online payments using different options like UPI, credit and debit cards, net banking, and mobile wallets. MobiKwik’s unlisted share price has remained higher in the past few years and allows its investors to make good returns along with the company’s growth. Here is the financials report of MobiKwik for a better understanding of the company’s performance:
| Financials Of MobiKwik | FY 2022 | FY2021 |
| Operating Revenue | 529 | 289 |
| EBITDA | -126 | -102 |
| Equity Shares | 5.71 | 0.1 |
| Profit After Taxes | -126 | -111.3 |
| Equity Per Share | -22 | -22 |
| Total Expenses | 535 | 302 |
| NPM | -24% | -39% |
The financials of MobiKwik clearly shows the company’s performance. The unlisted shares of the company are traded in the Pre-IPO market and perform moderately. However, the MobiKwik share price changes regularly and depends on market fluctuations. As online payment provider scouts for stakeholders ahead of its IPO, investing in unlisted shares of MobiKwik is beneficial in every aspect to enjoy long-term benefits. You can easily check the price and buy unlisted shares of MobiKwik and other companies from Stockify. It is India’s leading online unlisted shares brokerage platform that provides complete data on companies and their financial details. You can find trending unlisted shares like HDFC securities, OYO, Tata Technologies, and more there. Sign Up on Stockify to explore the wide range of Pre-IPO stocks now!