MobiKwik Shares Drop 10% as Lock-In Period Ends
MobiKwik’s shares experienced a sharp decline of 9.8% intraday today, falling to INR 243, following the end of the six-month lock-in period for pre-IPO shareholders. This move unlocked 3.8 crore shares, which are now eligible for trading.
Stock Recovery and Market Performance
- The stock slightly recovered later in the day, ending the trading session at INR 245.70, marking an 8.7% drop from the previous close.
- 28 lakh shares of MobiKwik were traded today, and the company’s market capitalization stood at INR 1,908.75 Cr (approximately $220.7 million).
Despite the recovery, the stock is now nearly 12% lower than its IPO issue price of INR 279.
Context: Recent Decline in MobiKwik’s Stock
This fall comes after MobiKwik’s shares had already dropped more than 5% over the past few days. The finance ministry’s dismissal of a report suggesting the imposition of merchant discount rate (MDR) on UPI transactions worth more than INR 3,000 contributed to the recent dip. The finance ministry called the report “speculative, baseless, and misleading,” reaffirming the government’s commitment to promoting digital payments via UPI.
In its Q4 earnings call, MobiKwik CEO Bipin Preet Singh expressed that the introduction of MDR on UPI would bring an additional revenue stream, particularly through their Pocket UPI feature, allowing users to make UPI payments directly from their digital wallet.
Financials and Losses
MobiKwik reported a significant increase in net loss, which surged to INR 56.03 Cr in Q4 FY25, compared to INR 67.1 lakh in the same quarter last year. Sequentially, the loss increased by 1.3% from INR 53.1 Cr.
- Operating revenue showed marginal growth, rising to INR 267.78 Cr in Q4 FY25, compared to INR 264.98 Cr in Q4 FY24.
- The primary driver of the widening loss was MobiKwik’s lending vertical, which, due to its low contribution margin, dragged down the bottom line. The financial services segment (lending, insurance, bill payments) saw revenue decline to INR 56 Cr in Q4 FY25, down from INR 73 Cr a year ago.
Future Outlook
To offset its losses, MobiKwik is focusing on expanding its offerings and diversifying into new segments. The company is also looking to increase its payment revenue, largely driven by the launch of Pocket UPI, which could serve as a key revenue generator moving forward.
