One Mobikwik Systems IPO

One MobiKwik Systems IPO Details

One MobiKwik Systems IPO Date

The One MobiKwik Systems Limited IPO will open for subscription on December 11, 2024, and the closing date for the IPO is December 13, 2024, according to the offer document filed by the company with SEBI. After this, investors are expected to be updated about the allotment status on Monday, December 16, 2024.

Investors who have been allotted shares can expect them to be credited to their demat account on December 17, 2024. The shares will be listed on the NSE and the BSE on Wednesday, December 18, 2024.

One MobiKwik Systems Limited IPO Price Band

The IPO is wholly a fresh issue. The IPO price band has been set between ₹265 to ₹279 per share. Interested investors can choose a price within this band to apply for the IPO.

The IPO is a book-building issue of ₹572 crore, with a fresh issue of 2.05 crore shares (amounting to ₹572 crore).

The One MobiKwik Systems Limited IPO listing price will be determined on December 18, 2024. The listing price is the price at which a company’s shares debut on the stock exchanges.

One MobiKwik Systems Limited IPO Lot Size

The One MobiKwik Systems Limited IPO details have been declared. The minimum lot size for an application is 53 shares, and the investor must apply for a minimum of 1 lot. Meanwhile, the IPO issue size is approximately ₹572 crore.

One MobiKwik Systems Limited IPO Objective

The proceeds from the fresh issue will be used to fund the company’s financial services and payment services businesses and research and development in data, ML, AI, and product and technology. Furthermore, part of the proceeds will be used for capital expenditures for its payment devices business and general corporate purposes. 

About One MobiKwik Systems 

Incorporated in March 2008, MobiKwik is a leading fintech company offering prepaid digital wallets and online payment services. The platform enables consumers to pay utility bills, make purchases at online and offline merchants, transfer money to phone numbers, UPI IDs, or bank accounts, check balances, and make QR-based payments using UPI or RuPay credit cards.

MobiKwik operates through two core business verticals: Payments and Financial Services. Its comprehensive ecosystem includes digital wallets, UPI, credit solutions like "MobiKwik ZIP," investment products, and insurance. These offerings leverage digital public infrastructure like Aadhaar, E-Nach, Digi-Locker, and NSDL to provide seamless, digital-first experiences.

As of June 30, 2024, MobiKwik serves 16.10 crore registered users and 0.43 crore merchants across online and offline channels. Registered users stood at 15.58 crore in FY24, out of which 4.73 crore users are active. Meanwhile, over 80% of its users and merchants belong to tier 1 and tier 2 cities, while the rest are from tier 3 and beyond.  

With 226 technology employees, 19 trademarks, and 11 applications pending, MobiKwik emphasises consumer trust, operational efficiency, and a technology-first approach to sustain its competitive edge.

MobiKwik achieved robust growth mainly due to its distribution of financial services (ZIP and ZIP EMI products). The company has partnered with 11 different banks and NBFCs to provide loans to its consumers and merchants through MobiKwik ZIP or ZIP EMI. Credit partner AUM stood at ₹2,495.4 crore as of 30 June 2024. Between FY22 and FY24, revenue from operations from financial services rose at a CAGR of 78.7% to reach ₹557.8 crore, making up 63.7% of total revenue. Meanwhile, overall revenue increased at a CAGR of 18.45% during the same period.   

India's smartphone users are set to cross 100 crore in five years, and online transactions have grown fourfold in the last five years. With India’s internet economy expected to exceed $600 billion by FY2030, MobiKwik can be in a strong position to expand its digital payments and credit services.

Now, One MobiKwik Systems Limited is launching its initial public offer (IPO). The total IPO issue size is ₹572 crore, comprising wholly fresh issues. Its shares will be listed on the NSE and BSE.

Company Name: One MobiKwik Systems Limited.

Company Established On: March 20, 2008

Company Type: Private Limited Company

Managing Director and CEO: Bipin Preet Singh

Financial snapshot

One MobiKwik Systems IPO Analysis

Strengths and Opportunities

1. MobiKwik's user-centric innovations, like MobiKwik ZIP, achieve a 93% repeat usage rate, driving strong engagement and profitability.
2. The company effectively manages operational costs for digital credit products while ensuring substantial growth in credit disbursements, underscoring scalable and responsible lending practices.
3. MobiKwik enjoys strong brand recall across India, supported by its easy-to-use app and diverse payment solutions, including e-commerce, retail, and bill payments. Trust in its brand is reflected in the rapid success of its curated P2P lending product, Xtra, which achieved ₹1,331.9 crore in AUM within 18 months.
4. Leveraging advanced cloud infrastructure, MobiKwik processes vast transactional data, applying machine learning to drive continuous innovation for users and merchants.
5. MobiKwik’s strategic marketing, SEO, and referral programs maintain low CAC, enabling cost-effective expansion while ensuring consumer retention.
6. The company targets India’s underserved middle-income segment, leveraging data to unlock opportunities for financial inclusion through credit access and innovative payment solutions.

Risks and Threats

1. The company's operations heavily depend on obtaining and maintaining approvals from the Reserve Bank of India (RBI) for key licenses, including payment aggregator and prepaid payment instrument authorisations. Any delays, suspensions, or revocations of these licenses could adversely affect the company’s operations.
2. The company faces significant cybersecurity risks due to its platform’s reliance on sensitive customer data. Past incidents of data breaches have led to regulatory scrutiny and reputational damage, and similar incidents in the future could result in financial liabilities and loss of consumer trust.
3. The company relies heavily on its lending partners for the success of its financial services business, with over 90% of its credit partner AUM contributed by the top three lending partners. This concentration risk makes the company vulnerable to disruptions or changes in these partnerships.
4. The low switching costs in digital credit and payment services amplify the challenge of retaining customers and maintaining market share.
5. The company has a history of financial losses and inconsistent profitability. While it achieved a small profit in FY24, it recorded a loss in Q1 FY25, raising concerns about its financial stability.
6. New compliance requirements under the Default Loss Guarantee (DLG) guidelines could limit MobiKwik’s ability to scale its lending business effectively.

How to apply for the One MobiKwik Systems IPO?

If you are interested in investing in One MobiKwik Systems IPO, you can follow these steps to apply:

1. Login to your Upstox account, using your six-digit PIN
2. After successfully logging in, click on ‘Discover’
3. On the Discover tab, you will find the ‘Invest in IPO’ section
4. Under the Invest in IPO section, look for the ‘One MobiKwik Systems IPO’ tab and click on it
5. Now fill in all the required information, like ‘bid price’ and ‘lot size’
6. Confirm and click on ‘Apply’
7. Accept the mandate on your UPI app

You can also pre-apply for the One MobiKwik Systems Limited India IPO on Upstox, which usually begins a day before the IPO opens for subscription.