MobiKwik just pulled off an 80% surge on its stock market debut, turning its $68 million IPO into the biggest fintech win India has seen in years.
India’s digital payments scene is crowded with heavyweights like Paytm, Google Pay, and PhonePe, but MobiKwik’s scrappy rise is proof there’s room for more players in this booming market.
Third time’s the charm
This wasn’t an overnight success. After shelving its original $223 million IPO in 2021 (thanks to Paytm’s disastrous debut), and then pausing its $82 million second go in January, MobiKwik finally went for it with a leaner, reworked offering.
The result? A listing oversubscribed by 119 times and an opening-day rally that has the markets buzzing.
Fine-tuning its strategy has also helped: MobiKwik knew it couldn’t go toe-to-toe with rivals in the payments game, so it pivoted to financial services. Lending and investment products now rake in two-thirds of its revenue.
Not just a payments app anymore — it’s a fintech contender.
Read more: Why Hyundai India’s IPO is not for beginners
Small fish, big pond
Let’s not get carried away, though. If there’s one thing that investors should be wary of, it’s MobiKwik’s size.
Its sales in the last financial year, which in India run from April to March, were a paltry 9% of Paytm’s. And it ranks way down the list (a lowly 17) of the most popular digital payment apps among Indian users. PhonePe, Google Pay and Paytm occupy the top three spots.
On the wealth services front, competition is just as fierce. Established players like Zerodha and IPO-hopeful Groww dominate, while traditional banks are rapidly expanding their online offerings.
And with 2024 shaping up as a record year for IPOs (300+ IPOs, $17.6 billion raised according to Bloomberg Intelligence), skeptics might say MobiKwik just got lucky in a frothy market.
Sure, the IPO is a win. The question now is whether it can sustain this momentum and turn promise into long-term results.
With 11.8 million new shareholders now onboard, MobiKwik’s real challenge is just beginning. The pressure is truly on.
