MobiKwik’s IPO: Is this the start of something bigger?

livemint.com:

Subscribe to enjoy similar stories. MobiKwik’s initial public offering (IPO) subscription is complete, and it’s all set to make its market debut soon. But there’s something different about this IPO that’s got everyone talking.

For starters, the demand has been phenomenal. The IPO was oversubscribed ~120 times, with retail investors leading the charge at ~135 times. Non-institutional investors weren’t far behind at ~109 times; even qualified institutional buyers booked ~120 times their share.

The across-the-board excitement shows just how much buzz this IPO has generated. What makes this IPO even more interesting is that all proceeds are being used for business expansion. This is quite rare in the Indian market, where most IPOs include an offer for sale (OFS), allowing promoters or early investors to sell their stakes and cash out.

Hyundai India’s recent IPO and LG India’s upcoming offering followed this approach. But MobiKwik has decided to reinvest every penny into growth, making this a standout move. MobiKwik’s business rests on two key pillars: its payments business and its financial services arm.

Each has its own unique role, but one is clearly outpacing the other in driving growth. The payments business is what most of us know MobiKwik for. It earns fees from merchants whenever users make purchases using MobiKwik’s wallet, UPI, MobiKwik-issued card, or even through buy-now-pay-later (BNPL) or EMI products.