MobiKwik IPO: Investors Bet on Fintech Growth and Listing Gains

The fintech sector has emerged as a promising investment opportunity, with companies like MobiKwik capturing investors' attention. MobiKwik's recent initial public offering (IPO) has garnered bids worth $4.7 billion, reflecting investors' confidence in the fintech sector's growth and potential listing gains. This article explores the reasons behind the high demand for MobiKwik's IPO and the factors driving the fintech sector's growth.

MobiKwik's strategic focus on financial inclusion and expansion into underserved markets has resonated with investors. With 161 million registered users and 4.26 million merchants, MobiKwik's extensive reach and innovative products like MobiKwik ZIP and Merchant Cash Advance have driven its growth. The company's commitment to enhancing financial inclusion for underserved populations in India, coupled with its first-ever full-year profitability in FY24, has bolstered investor sentiment. Moreover, the high Grey Market Premium (GMP) of ₹29 suggests strong demand for MobiKwik shares, indicating potential listing gains.

MobiKwik's recent profitability and growth in user base and merchant partnerships have fueled investor demand for its IPO. In FY24, MobiKwik reported its first-ever full-year profitability, with a Profit After Tax (PAT) of ₹14.08 crore, a remarkable turnaround from the ₹83.81 crore loss in FY23. Additionally, the company has grown its registered user base to 161.03 million and enabled 4.26 million merchants to make and accept payments. This growth, coupled with the fintech sector's promising outlook, has attracted investors to MobiKwik's IPO.



MobiKwik's focus on Bharat (the underserved Indian population) differentiates it from other fintech players and enhances its growth prospects. By leveraging technology to enhance financial inclusion, MobiKwik has created innovative products like MobiKwik ZIP and Merchant Cash Advance, catering to the unique needs of this segment. This strategy has enabled MobiKwik to tap into a vast, untapped market, driving its user base to 161 million registered users and 4.26 million merchants. Moreover, MobiKwik's commitment to utilizing digital public infrastructure (DPI) such as Aadhaar, E-Nach, Digi-Locker, and NSDL ensures seamless and digital-first experiences for consumers, further bolstering its growth prospects.

MobiKwik's digital credit offerings, such as MobiKwik ZIP and ZIP EMI, have significantly contributed to its revenue growth and user base expansion. As of June 30, 2024, MobiKwik had 161.03 million registered users, with 4.26 million merchants enabled for payments. These innovative products, leveraging digital public infrastructure like Aadhaar and E-Nach, provide seamless and digital-first experiences for consumers. By offering credit facilities, MobiKwik has expanded its user base, particularly among underserved populations, driving revenue growth.

In conclusion, MobiKwik's IPO has attracted significant investor interest, with bids worth $4.7 billion. The company's strategic focus on financial inclusion, recent profitability, and growth in user base and merchant partnerships have driven this demand. MobiKwik's commitment to enhancing financial inclusion for underserved populations in India, coupled with its innovative products and digital credit offerings, positions it well for future growth. As the fintech sector continues to expand, investors can expect more opportunities for growth and potential listing gains.