Established in 2009, during the early stages of India’s digital payments industry, MobiKwik was first a mobile wallet. This was designed to make it easier for customers to fund their mobile wallets and use them to quickly and easily pay their utility bills. Since then, the husband-wife team’s fintech business has expanded greatly.
The MobiKwik wallet can be used to make payments at a variety of locations, including pharmacies, big-box stores, gas stations, and online shopping. Via a unified payment interface, peer-to-peer payments are also possible on this financial player’s platform (UPI).
The company’s operations are separated into three categories: consumer payments (MobiKwik Wallet), payment gateway (Zaakpay), and buy now, pay later (Zip EMI and MobiKwik Zip). By March 2021, it had over 34 lakh e-commerce, physical retail, and biller partners in addition to over 10 crore registered users.
The parent firm, One MobiKwik Systems, is now prepared to initiate the IPO and raise funds. Both a new issuance and an offer of sale will be part of the One MobiKwik IPO. The business plans to utilize the proceeds from the new issue to fund inorganic development, acquire and retain users and merchants, invest in data science, products, and technology, and provide cash collateral for partners in buy now pay later (BNPL) transactions.
Strengths
- One of India’s biggest BNPL and mobile wallets
- combines the advantages of BNPL with regular mobile payments
- In FY21, the recurrence percentage of customers of its flagship BNPL product, MobiKwik Zip, was 79.1%.
- offers small-ticket credit that is both accessible and reasonably priced through its BNPL segment.
- platform with a tech focus that makes use of deep data science and big data analytics, including machine learning
- purchased the online mutual fund platform Clearfunds in 2018 in order to provide wealthtech products.
- has alliances with four insurance companies and 36 asset management firms.
- Online retailers can access end-to-end payment processing solutions through Zaakpay, the company’s payment gateway aggregator.
Risks
- There are many and changing cybersecurity risks, such as malware or computer viruses, and the financial sector is facing fierce competition.
- In the past, losses have come from the large sums of money needed to expand the company and the expenses associated with acquiring new users.
- exposure to its BNPL business’s credit risk
- Its partnerships with the lending partners determine the quality of its BNPL products.
- The BNPL credit may not be regarded by borrowers as being as important as other commitments.
Financial
How to Apply for Mobikwik IPO:
If you want to take advantage of this investing opportunity but are confused how to apply for the MobiKwik IPO, we’ve described the processes for you below:
- Login to your Demate account.
- After successfully logging in, click on ‘IPO’ Section.
- Under the IPO section, look for the ‘MobiKwik IPO’ tab and click on it
- Fill in all the requirements, like ‘bid price’ and ‘lot size’.
- Confirm it and click on the ‘Apply.’
- Accept on your UPI app.
Open a demat account with Zerodha to apply for the MobiKwik IPO:
A demat account is required in order to apply for the MobiKwik initial public offering. Using a demat account, you can hold the shares you buy in a dematerialized fashion. If you don’t already have one, you can open a demat account with Zerodha by going to our website or downloading the app.
Here is a step-by-step guide on how to open a demat account with Zerodha:
- Click here to visit the demat account opening page on the Zerodha website.
- Enter your Mobile number and essential details to open a demat account.
- Upload the scanned copies of your bank statement, Aadhaar card, PAN, and cancelled check.
- Utilizing the OTP that was sent to your registered mobile number, complete the e-verification.