MobiKwik IPO: Check out 4 key metrics and comparisons with peers

MobiKwik IPO: MobiKwik Systems Ltd refiled its draft red herring prospectus (DRHP) with the capital market regulator, Securities and Exchange Board of India (SEBI), for an initial public offering (IPO) last week. This time, MobiKwik Systems hopes to raise 700 crore through its IPO. The company has scaled back its IPO from 1,900 crore.

The MobiKwik IPO is a completely new equity share offering that does not include an offer for sale (OFS) component. From the proceeds of the fresh issue, a total of 250 crore will be used to finance the growth of the financial services industry, 135 crore to finance the growth of the payment services industry, 135 crore to finance investments in data, machine learning, artificial intelligence, and other products and technology, 70.28 crore to finance capital expenditures for the payment devices industry, and general corporate purposes.

Bipin Preet Singh, Upasana Rupkrishan Taku, Koshur Family Trust, and Narinder Singh Family Trust are the company's promoters. The company's revenue from operations for the fiscal year 2022–2023 increased to 539.47 crore from 526.56 crore in the previous fiscal year. From 128.16 crore in the fiscal year 2022 to 83.81 crore in the fiscal year 2023, the loss for the year dropped by 34.60%.

The revenue from operations for the six months that concluded on September 30, 2023, was 381.09 crore, and the profit after taxes was 9.48 crore. In fiscal 2023, MobiKwik's addressable market was estimated to be worth USD 5.3 billion (about 42.6k crores), and by fiscal 2028, it was expected to grow to roughly USD 16–18 billion (about 128k–144k crores), according to the company's DRHP.

Let's look at the comparison between MobiKwik and its peersas stated in the DRHP with regard to services and registered user count, merchant offerings, revenue per marketing spend, and employee cost per Revenue. MobiKwik is one of the biggest digital financial product and services platforms in India by registered users as of fiscal 2023, according to the company's DRHP.

With about 140 million registered users as of fiscal 2023, it trails only PhonePe (500 million), (300 million), and Freecharge (155 million) in terms of registered users. As of December 2023, MobiKwik is among the most complete suppliers of merchant focused services. The services provided by MobiKwik range from point of sale (POS) systems, online payment gateways, QR code based payments, multiple payment methods, transaction management tools, and other financial services like loans.

In terms of how effectively digital financial products and services are allocated, MobiKwik ranks among the best as of fiscal 2023. In the fiscal year 2023, MobiKwik generated 6.64 rupees in revenue for every rupee spent on marketing. This metric places other players ahead of Paytm, Groww, Phonepe, and Fino Payments Bank.

Among digital financial product and services platforms in fiscal 2023, MobiKwik had one of the lowest employee cost per revenue. The MobiKwik revenue per employee metric for Fiscal 2023 is approximately 0.18. where the metric only places it behind Navi and Fino payments banks. Livemint tops charts as the fastest growing news website in the world to know more.

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