India’s tech IPO season is here to stay, as yet another tech IPO sees massive response, despite a rather subdued market sentiment. The IPO of One MobiKwik Systems Ltd., popularly known as MobiKwik, concluded on a positive note on December 13. The Gurgaon-headquartered fintech company has been prominent in India’s growing digital payments landscape, and the firm saw its initial public offering oversubscribed by a total of 119.38 times.
Overall, the response to MobiKwik’s IPO drew interest from all investor categories. Retail individual investors (RIIs), a vital segment in gauging a company’s appeal to the public, oversubscribed their allocated shares 134.67 times. Non-institutional investors (NIIs) also demonstrated robust interest, subscribing 108.95 times their quota, while the Qualified Institutional Buyers (QIBs) portion was booked 119.50 times.
The IPO also attracted bids for over 141 crore equity shares against an offer size of just 1.18 crore shares, while retail participation alone accounted for bids amounting to 27.49 crore shares, far exceeding the allocated 20.50 lakh shares. The allotment of shares for the IPO is expected to be finalized by December 16, while the listing scheduled on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) is set to occur two days later, on December 18.
The Indian fintech firm had priced its IPO in the range of ₹265 to ₹279 per share, with the entire ₹572-crore issue comprising issuance of up to 2.05 crore equity shares. There was no offer-for-sale (OFS) component in this IPO, ensuring all proceeds are directed toward the company’s expansion plans. Post-IPO, the company is expected to achieve a valuation of approximately $250 million, according to a report by The Economic Times.
The IPO’s success was evident in the unofficial grey market as well, where the firm’s shares commanded a premium of ₹158 per share. This translates to an estimated 56% gain over the upper price band of ₹279. For now, the firm plans to use the proceeds from the IPO to further strengthen its presence in the fintech space, including investing in AI, machine learning, and financial and payment services, amongst others.
Speaking more about MobiKwik itself, the firm was founded in 2009 by Bipin Preet Singh and Upasana Taku. Since then, it has grown to become one of India’s leading digital financial services providers, and its portfolio includes a variety of fintech services. This includes digital payments, a buy-now-pay-later (BNPL) offering, and a payment gateway solution, and the company has actively targeted underserved regions, with 72% of its digital loan disbursements occurring in Tier 3 cities and beyond.
Despite reporting a net loss of ₹6.6 crore in the first quarter of FY25, MobiKwik clocked a growth in its operating revenue for the period – it amounted to ₹342.2 crore. Its payment gross merchandise value (GMV) grew at a compound annual growth rate (CAGR) of 45.88% between FY22 and FY24, while its digital loan disbursement platform, ZIP, recorded a CAGR of 112.16% over the same period.