Ahead of IPO, Mobikwik scouts for investor; eyes profit next fiscal


MUMBAI, June 16: Digital payments provider

Mobikwik is aiming to be profitable next fiscal and is looking

to on-board an investor who will help it go public in the next

three years, a top official has said.

The 2009-incorporated company is planning to report

its first quarterly profit in March, and will be profitable

from a full year perspective from FY21.

“We are looking for an investor who will help the

company go for an initial public offering (IPO) in three

years,” co-founder and chief executive Bipin Preet Singh told

PTI here.

Singh said he is in talks with multiple players but

refused to share more details including to specify whether it

will be a strategic or a financial investor.

Mobikwik already counts Sequoia Capital, Bajaj Finance

and South African firm Net 1 UEPS Technologies among its major


The company, whose competitors include deep pocketed

and aggressive players like the Alibaba-backed Paytm, had

doubled revenue in FY19 to Rs 184.6 crore.

Singh said there is not much of cash burn from the

payment transactions, where it has to give out rewards for

usage, and attributed higher investments delaying


It is focusing on leveraging its user base of over 100

million to hawk more tailor-made products like micro-

insurance, loans and investments which are margin accretive.

It sold 4 lakh loans worth Rs 500 crore in FY19, and

aims to more than double it to 1.5 million in FY20, Singh


Currently, Mobikwik sells policies of seven insurance

companies and is targeting to sell 2 million policies across

life, general and health space in FY20, he said, and stressed

that it is not selling policies under any of the flagship

government schemes.

The company is targeting urban customers with deep

pockets and who are digital savvy, he said.

In wealth management, it is starting with selling

liquid funds that can be withdrawn in between as well, with

the idea of giving investors more than a fixed deposit sans

any hassles, he said, adding all the investments happen

through the app.

“We are not interested to be a payments bank or a

shadow bank. We want to be a financial distributor with a

deeper say in our partnerships, Singh said. (PTI)