MobiKwik cut IPO size due to higher FY24 revenue

MobiKwik Reduces IPO Size Amidst Strong FY24 Revenue Growth.

Expert Analysis:

• IPO Size Reduction: MobiKwik has reduced its IPO size to Rs 700 crore, which is about 63% lower than its 2021 target of Rs 1,900 crore.

• Financial Performance Comparison: In FY21, MobiKwik reported revenue of Rs 288.5 crore and a loss of Rs 111.3 crore, while in FY24, it achieved revenue of Rs 890.32 crore and a profit of Rs 14.08 crore.

• Fund Allocation: The IPO funds will be allocated as follows: Rs 250 crore for financial services, Rs 135 crore for financial and payment services, Rs 135 crore for investments in AI and machine learning, and Rs 70 crore for capital expenditure.

• Revenue Mix Outlook: Taku indicated that MobiKwik's revenue from payments is expected to grow, with FY24 showing financial services at 55-60% and payments at 40-45%.

• Payment Expansion Strategy: MobiKwik plans to scale its payments business by acquiring new customers, launching products, and enhancing offline merchant acquisition using soundboxes, EDC machines, and merchant loans.

• User and Merchant Base: As of September 2023, MobiKwik had 146.94 million registered users and about 3.81 million merchants.