In an exclusive interview, ETMarkets spoke to Upasana Taku (Chairperson & CFO) and Bipin Preet Singh (MD & CEO) about MobiKwik’s journey, competitive edge, financials, and future plans. Excerpts:
With an issue size of over ₹570 crore, MobiKwik’s IPO seems significant. Could you briefly take us through the journey of the company and its business model?
Bipin Preet Singh: MobiKwik is a fintech company that began 15 years ago as a digital wallet. Our primary business revolves around payments, making us India’s largest digital wallet with over 160 million users and 4 million merchants. The app facilitates bill payments, money transfers, online shopping, and QR-based transactions.
In addition to payments, MobiKwik also distributes financial products, catering to users from tier 2 and 3 cities, often classified as middle or lower-middle income, who have limited access to banking services. Through partnerships with banks, NBFCs, and mutual funds, we provide credit cards, loans, fixed deposits, and mutual funds at accessible ticket sizes. These two segments—payments and financial product distribution—equally drive MobiKwik’s growth.
The fintech space is competitive. How does MobiKwik differentiate itself from its competitors?
Upasana Taku: Since inception, we’ve focused on frugality and product innovation. MobiKwik started humbly—literally on our dining table in Dwarka. We bootstrapped for the first 4–5 years before raising funds from investors like Sequoia Capital India (now Peak XV), American Express, and the Abu Dhabi Investment Authority.
Despite raising only ₹1,200 crore—far less than competitors—we’ve grown consistently, achieving 50–60% revenue growth in recent years while turning profitable. Our products are designed for trust and innovation, like our “Pocket UPI,” which enables seamless QR-based payments using the wallet.
What are your plans for the future, especially in terms of growth and tackling competition?
Bipin Preet Singh: Instead of focusing on competition, we prioritize customer needs. With over 1.5 billion people in India, there’s immense untapped potential in digital payments and financial products.Our strategy involves scaling user and merchant adoption while adding new products, including insurance, savings, and loans. We’re also investing in AI-driven innovations like Lens.ai, which offers smart bank statement analysis. Crucially, we aim to grow without burning cash, maintaining profitability as we expand.Could you provide insights into MobiKwik’s recent financial performance?
Upasana Taku: From FY23 to FY24, we grew revenue by 59%, reaching ₹890 crore, and turned profitable with ₹37 crore EBITDA and ₹14 crore PAT. In Q1 FY25, we reported ₹345 crore in revenue and a marginal EBITDA profit of ₹2 crore, though PAT was negative at ₹6 crore.
Operating leverage is working in our favor. While revenue is growing at a 50% clip, fixed costs have remained stable at around ₹220–230 crore over the past three years, dropping as a percentage of revenue from 47% to 30%. This positions us well for sustained profitability.
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Finally, what are your expectations from the IPO, and how will the proceeds be utilized?
Upasana Taku: The ₹570 crore IPO is a completely fresh issue, with no offer for sale. Neither Bipin nor I, nor any existing shareholders, are selling shares. The proceeds will be invested in three main areas:
- Expanding our payments business.
- Scaling the distribution of financial products.
- Product development, with a focus on machine learning and AI.
This growth capital will help us scale operations and strengthen our product offerings.Disclaimer: Please note that these are not recommendations. Trading and investing in the securities market carries risk. Please consult your financial advisor before investing.