Buy Unlisted Shares of One Mobikwik System

One MobiKwik logoOne MobiKwik Systems provides software solutions. The Company offers mobile application for online mobile recharge and payments. One Mobikwik Systems is based in India. Unlisted shares of Mobikwik are currently trading at around Rs 600 per share. 

For buying pre IPO unlisted stocks of One Mobikwik Systems at best rates, please call Dharawat Securities on 8108303330
Mobikwik is a technology driven Fintech company and is among one of the largest mobile wallets (MobiKwik Wallet) and Buy Now Pay Later (BNPL) players in India.

Company’s business operations are divided into three major segments:

  1. BNPL – Consisting of MobiKwik Zip and Zip EMI which provides accessible and affordable small-ticket credit to middle-class Indians for daily payments as well as discretionary spending.
  2. Consumer Payments – Consisting of MobiKwik Wallet which is a mobile payments app.
  3. Payment Gateway – which includes Zaakpay, a payment gateway aggregator offering end-to-end payment solutions to online merchants.

The company operates as a mobile payments network that connects users with retailers. It enables users to load money into wallet once using cash, loyalty points, debit cards, credit cards, and net banking to make payments for online/offline purchases; and transfer money to wallets and bank accounts using MobiKwik.

Products & Services:  Mobile Recharge, Electricity Bill Payment, DTH Bill Payment, Gas Bill Payment, EMI Payments, Offers, Bus-Online Bus Booking
Category: Service Provider

The company is focussing on the fast-growing online payments market of India by providing everyday mobile payments and benefits of Buy Now Pay Later (BNPL) offerings. As of March 31, 2021, Mobikwik has over 101.37 million registered users and more than 3.44 million e-commerce, physical retail, and biller partners.

Focused on addressing the unmet credit needs of the fast growing online transactors by combining the convenience of everyday mobile payments with the benefits of Buy Now Pay Later (BNPL). Technology-first company leveraging big data analytics and deep data science (including machine learning).

One Mobikwik Systems Limited, also popularly known as MobiKwik, is an unlisted public company incorporated on 20 March, 2008. It is located in Gurgaon, Haryana.

Company Promoters:

Bipin Preet Singh, Upasana Rupkrishan Taku, Koshur Family Trust, and Narinder Singh Family Trust are the company promoters.

The Corporate Identification Number (CIN) of One Mobikwik Systems Limited is U64201HR2008PLC053766. The registered office of One Mobikwik Systems Limited is at 5TH FLOOR, HUDA CITY CENTRE METRO STATION,SECTOR 29, GURUGRAM, Gurgaon, Haryana. https://www.mobikwik.com/

Shareholder Details

Name of Shareholder % of pre-Offer shareholding*
Promoters
Bipin Preet Singh 20.21%
Upasana Rupkrishan Taku 14.31%
Other Selling Shareholders
Bajaj Finance Ltd 13.86%
Sequoia Capital India Investments IV 13.46%
Tree Line Asia Master Fund (Singapore) Pte Ltd 4.43%
Sequoia Capital India Investment Holdings III 3.79%
Cisco Systems (USA) Pte. Ltd. 2.08%
American Express Travel Related Services Company, Inc 1.81%

Financials

Particulars For the year/period ended (₹ in Millions)
31-Mar-21 31-Mar-20 31-Mar-19
Total Assets 4,231.39 3,379.36 3,350.84
Total Revenue 3,022.56 3,698.54 1,602.32
Profit After Tax (1,113.00) (999.20) (1,479.73)

For fiscal 2021, the firm reported a total income of 302.26 crore, up from  369.85 crore a year ago. Net loss for the period widened to 111.30 crore from 99.92 crore in the previous year.

At present, 70% of MobiKwik’s revenues comes from consumer payments, with buy-now-pay-later (BNPL) offering, MobiKwik Zip, and other financial services contributing to 19% of the fintech’s overall revenues.

Revenues from MobiKwik’s payment gateway business Zaakpay contributes another 11% of the company’s overall income.

According to MobiKwik, the company has 25 million pre-approved BNPL users, 2.5 million of which are active.

The company also said that the total value of digital transactions processed on its platform more than doubled to Rs 21,221 crore in the first nine months. The total value of BNPL transactions on the platform also grew to Rs 1057.7 crore during the period.

Strengths

  • Large engaged user base with low Customer Acquisition Costs – Registered Users have grown at a CAGR of 25.70% from 64.16 million as of March 31, 2019 to 101.37 million as of March 31, 2021. In FY21, 77% Registered Users were added organically without any cost (Source: Company DRHP).
  • Strong consumer brand recognised across India – Extensive physical retail and online merchant network across India as of March 31, 2021 was over 3.44 million, including over 3.37 million physical stores, 73,281 online merchants and 283 billers (Source: Company DRHP).
  • Technology and product first approach to business – The product design is tailored to provide an experience that is ‘simple yet delightful’, and supports the user through the entire payment life cycle.

MobiKwik IPO – Noteworthy Highlights

The significant highlights of MobiKwik include –

-The digital payment company has more than 107 million registered users.

-It has a network of nearly 3.44 million online and offline billing merchant partners.

-Besides digital payment, the company is adept at cross-selling small sachets of insurance policies and loans.

-MobiKwik also offers American Express-powered credit cards.

-According to The Economics Times, MobiKwik records over a million transactions each day across its services.

Industry Trends

India ranks as the second largest mobile payment markets in the world in terms of user base : Person to merchant (P2M) transactions have been one of the biggest drivers of mobile payments adoption growth. Use cases like ecommerce, food delivery, e-grocery, OTAs and other service have led to significant growth in total user base for mobile payments in India.

Globally, BNPL has emerged as a large and fast-growing opportunity to democratize lending: India has low credit card penetration (approximately 3.5% of the Indian population above the age of 15 years) compared to the developed countries; this is an opportunity for BNPL models to grow in India as well.

MobiKwik’s competitive advantage lies in its ability to cross-sell and use data science and technology for growth. Also, its capability of managing risks work in favour of this company.

Over the years, the company has entered into multiple strategic partnerships with IDFC Bank, DT One, Home Credit, MakeMyTrip, JustEat and PVR. This has helped MobiKwik strengthen its market presence significantly.

Since the trends of mobile wallets do not manifest any signs of a slowdown in future, MobiKwik is likely to perform well in the coming years. However, the same catalysts also favour MobiKwik’s competitors such as Paytm, FreeCharge, PhonePe, JusPay and FastCharge.

Outlook: 

One Mobikwik Systems Ltd is the largest Buy Now Pay Later (BNPL) fintech and one of the largest mobile wallets in India. Digitally paying users have been rapidly growing in India in the last decade, but the credit card penetration in the country is still only 3.5%.

The company is 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.

MobiKwik is technology-first company leveraging big data analytics and deep data science (including machine learning) to continuously delight users and merchants on our platform. Our mission is to build a world-class payments and credit product for Bharat!

The Gurgaon-based firm said it will continue to seek attractive inorganic opportunities that will fit well with its strategic business objectives and growth strategies, and the amount of net proceeds to be used for acquisitions will be based on its management’s decision.

MobiKwik has leveraged the upward trend in digital payments and mobile wallet culture way before its peers. The thorough understanding of the virtual platform and ever-changing online payment patterns continue to benefit the business model of MobiKwik.

Moreover, this digital payment company has been proactively expanding its service offerings to boost its customer base and leverage newer market trends. Since the growth of virtual platforms, especially, mobile wallets are expected to surge in the upcoming years investing in MobiKwik IPO could prove useful in the long run.

Latest News and Developments

Mobikwik seeks to raise $100 million in equity after deferring planned IPO – 8 June 2022

One Mobikwik Systems Ltd. is in talks with investors to raise as much as $100 million in equity to finance business expansion.

The Gurugram-based fintech firm, which turned profitable for the first time in the quarter ending December 31, will use the funds for marketing, to hire people and make acquisitions, co-founder Upasana Taku said in an interview in Mumbai. The company is still planning to go ahead with the IPO at an opportune time, she said.

IPO-bound MobiKwik expects revenue to touch Rs 600 crore by end of FY22 – 10 March 2022

The company expects to clock annual revenue of Rs 550 crore – Rs 600 crore by the end of FY22, nearly double from last year, MobiKwik cofounder Upasana Taku told ET.

Digital payments and financial services platform MobiKwik’s total income rose 86% to Rs 396.5 crore in the first nine months of FY22, compared to the year-ago period.

In FY21, MobiKwik had registered a total income of Rs 302 crore, according to its regulatory filings.

Earnings before interest, taxes, depreciation and amortisation (Ebitda) losses widened to Rs 78.4 crore for the first nine months compared to Rs 57.9 crore in Ebitda loss for the same period in FY21.

Digital payments solutions startup MobiKwik has raised about $13.3 million (Rs 100 crore) in funding from Bennett Coleman and Company Limited (BCCL).

MobiKwik files for 1,900 crore share sale – Payments firm One MobiKwik Systems Ltd on filed draft share sale documents with the market regulator to raise as much as 1,900 crore, joining a host of new-age technology companies racing to tap public market investors.

MobiKwik has appointed ICICI Securities, IIFL Securities, Credit Suisse Securities (India) Private Limited, Jefferies India and BNP Paribas as its merchant banker.
Tech startups such as MobiKwik are rushing to take advantage of the positive sentiments created by a record-breaking stocks rally, burgeoning public interest in technology shares and the accelerated adoption of online services in the past year because of the pandemic.

Among MobiKwik’s shareholders participating in the offer for sale are American Express Travel Related Services, which plans to sell shares worth as much as 9.98 crore, Bajaj Finance ( 68.98 crore), Sequoia Capital ( 95 crore), Cisco Systems ( 11.48 crore), Tree Line Asia Master Fund Pte ( 24.41 crore) and MobiKwik co-founders Bipin Preet Singh ( 113.33 crore) and Upasana Taku ( 78.82 crore).

Singh and Taku hold 20.21% and 14.31% in the company, respectively. Bajaj Finance owns 13.86%, while Sequoia Capital India Investment has 13.46%.

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