A digital currency In order to achieve its goal of being the leader in India’s financial technology industry, MobiKwik is making plans for an initial public offering (IPO) that will take place in December 2024.
According to predictions, the initial public offering (IPO) could potentially garner 700 Crores. During this time, MobiKwik has also expanded its offerings to include digital payments, lending, insurance, and financial services in addition to its mobile wallet. Companies are increasing their offerings in order to acquire market share and meet the rising demand for financial services across all socioeconomic strata in India, which is reflected in these shifts, which are a reflection of the broader trend in fintech in India.
The initial public offering (IPO) plans of MobiKwik have undergone substantial revisions. Revisions to the strategies have only recently been made. It was anticipated that the firm would raise a total of 1900 crores in 2021; however, taking into account the favorable market conditions, this aim was abandoned. Figures that have been revised anticipate only 700 million crores in 2024.
Their projections for expansion are pessimistic, although there are some positives, such as increased optimism for the company’s financial situation. The fact that their operational income increased from 288.5 crores to 890 crores in 2021–2024 and that it made 14 crores in profits in FY24 is evidence of the company’s adaptability in the rapidly evolving digital payments ecosystem in India.
Offer a Variety of Investment Opportunities This is because Upasana Taku anticipates that the company will expand; consequently, let’s examine their goals. As a result of Taku’s assertion that MobiKwik’s income projections are more accurate, the company does not generate as much revenue as was anticipated.
MobiKwik’s goal is to achieve growth with little spending and five times the current revenue. It appears that the company’s growth trajectory has matured as a result of the company’s persistence, and growth and profitability are now proportional to one another. Take into consideration the development of technology and payment methods.
MobiKwik intends to use the majority of the cash from the first public offering (IPO) to build the payment services company, taking into consideration the existing revenue mix and step. The remainder of the company’s revenue mix in FY24 was comprised of financial services, with payments and other facilitated services accounting for between 40 and 45 percent of the total.
As a result, MobiKwik is expanding its operations into tier-3 and tier-5 cities in India that have a requirement for digital payment methods. This plan calls for the expansion of the company as well as the introduction of sound boxes and EDC gadgets suitable for offline selling.
A transition is occurring in MobiKwik’s business model as the importance of payments continues to grow. Because they are designed to meet the growing demand, the products offered by MobiKwik satisfy virtually all payment requirements. The company is making significant investments in artificial intelligence and machine learning in order to compete in the payments industry.
The Enhancement of the Merchant Ecosystem
In addition to this, MobiKwik is looking to entice a greater number of merchants, particularly in offline regions that have been exploited for years. MobiKwik is assisting establishments in rural and semi-urban areas in their transition to cashless transactions by providing hand-free payment technology, sound boxes, and EDC devices. Using these devices, small and medium-sized businesses are able to make card payments and transition to digital. Due to the fact that the Indian government is encouraging cashless transactions, their market penetration will increase as a result of its capacity to service a variety of markets.
On the 30th of September in the year 2023, MobiKwik has a total of 3.81 million merchants and 146.94 million users. In my opinion, having thus many consumers can be beneficial to the expansion of the organization, particularly into new regions. The expansion of MobiKwik’s merchant network may result in an increase in both transactions and income.
Analysis on the Growth of MobiKwik
Technology is being developed by MobiKwik as the company works toward a public listing. The company has the potential to enter the Indian fintech sector if there is an increase in demand for financial services and payment systems. Through the generation of revenues, the expansion of its merchant network, and the expansion of its customer base, MobiKwik is positioned to receive benefits from India’s digital financial services business.
By flooding the market with one-of-a-kind products, the potential initial public offering (IPO) of MobiKwik intends to draw individuals from all parts of the world. This implies that even people who live in low-country areas will wear urban and rural clothing.
If you are interested for more: MobiKwik IPO in 2024: A Shift Focus to Digital Pa