One MobiKwik Systems IPO Details, Financials, Valuation & Peers

One MobiKwik Systems Limited, founded by Bipin Preet Singh and Upasana Taku, is a pioneering platform business in India with a focus on leveraging technology to facilitate financial inclusion for underserved populations. With a two-sided payments network comprising consumers and merchants, the company offers a range of digital financial products and services. Through innovation and strategic expansion, MobiKwik has achieved significant growth and profitability in the digital financial services sector.

Key Points:

• Business Model: MobiKwik operates as a platform business, connecting consumers and merchants through its two-sided payments network. The company has amassed a large user base of 146.94 million registered users and enabled 3.81 million merchants to make and accept payments both online and offline.
• Frugal, Digital-First Innovation: MobiKwik is committed to growth through digital-first innovations, maintaining one of the lowest employee costs to revenue ratios among digital financial product and services platforms. The company's focus on digital innovation has resulted in impressive growth rates, with Payment GMV growing at an annual rate of 32.33% and MobiKwik ZIP GMV (Disbursements) growing at an annual rate of 354.86% from Fiscal 2021 to Fiscal 2023.
• Network Effects: MobiKwik capitalizes on various network effects, where the growth in the number of consumers leads to greater acceptance among merchants and vice versa. Additionally, the company leverages payments data to facilitate broader consumer underwriting, leading to increased spending within the network.
• Product Portfolio: MobiKwik offers a diverse range of products for both consumers and merchants. For consumers, this includes payments services such as recharge and bill payments, online and offline payments, money transfers, and digital credit products like MobiKwik ZIP and ZIP EMI. The company also provides investment products like Lens for personal financial management, Xtra for alternative investments, and distribution of mutual funds and digital gold.
• Merchant Empowerment: On the merchant side, MobiKwik empowers businesses across India with its payments and financial services offerings. This includes online checkout solutions for e-commerce merchants, scan and pay with Kwik QRs for retail partners, MobiKwik Vibe for QR-enabled payment announcements, MobiKwik EDC Machines for point-of-sale transactions, and Merchant Cash Advance for accessible credit solutions.