One Mobikwik Systems shares climb over 14% after Q2 results announcement

One Mobikwik Systems shares climbed 14 percent on Tuesday, January 7 to its day's high of ₹638 following the earnings announcement by the company for the quarter ended September 2024.

This was the first time the company announced quarterly results after its stock market debut. Shares of the company were listed on bourses on December 18, 2024, at a 58.51 per cent premium over the IPO price of ₹279 on the BSE at ₹442.25 apiece.

Currently, the stock is trading 129 per cent above its issue price.

Mobikwik Q2 performance

MobiKwik posted a net loss of ₹3.5 crore for the quarter ending September 2024, a significant decline from the ₹5.2 crore profit during the same period last year. The company also reported a loss of ₹6.6 crore for the quarter ending June 2024.

However, operational revenue for the second quarter saw a notable increase of 43% year-on-year, reaching ₹291 crore, up from ₹203 crore in the same quarter of the previous year.

The losses in the second quarter are attributed to ongoing investments focused on driving the company’s next phase of growth.

A Leader in Digital Financial Services

MobiKwik, founded in 2009 by Bipin Preet Singh and Upasana Taku, has grown into one of India’s leading digital banking platforms. The company offers an extensive suite of financial products tailored for both consumers and merchants. Its offerings include payments, digital credit, and investment solutions, making it a comprehensive platform for financial needs.

MobiKwik serves a vast network of 161 million registered users, catering to diverse payment needs such as utility bills, e-commerce shopping, food delivery, and retail purchases. It also has a strong merchant network of 4.3 million, spanning large retail chains, small businesses, and local mom-and-pop stores (kirana shops). This extensive reach has positioned the company as a preferred partner for digital payments across India.

The company commands a significant 23.11 per cent market share in India's PPI wallet segment by gross transaction value as of May 2024, establishing itself as the country's largest wallet player.

MobiKwik's IPO, valued at ₹572 crore, garnered exceptional interest, being oversubscribed 119 times. The overwhelming response was fueled by investor optimism regarding its profitability and the rapid growth of the digital payments sector. The capital raised through the IPO is being allocated to scale financial and payment services, bolster AI and machine learning capabilities, and enhance payment device infrastructure.

Notable stakeholders in the company include Bajaj Finance, one of India’s leading NBFCs, with a 10.27 per cent stake, along with the Abu Dhabi Investment Authority (ADIA) holding 2.14 per cent and American Express with 1.34 per cent ownership. These strategic investments underscore strong institutional confidence in MobiKwik’s growth potential and its pivotal role in the digital payments ecosystem.