One MobiKwik Systems Case Study: Business Model, Financials & SWOT Analysis
One of the most popular entities in the Indian fintech space is One MobiKwik Systems Limited or rather MobiKwik. Since its inception in 2008, the firm has grown from a provider of closed wallet facilities to offering a full suite of digital financial services products, such as loans, peer to peer lending, mutual funds, etc.
In this blog, we will provide the case study of One Mobikwik Systems, its business model and services provided by this company. We will also provide the financial performance, and SWOT analysis of the company.
MobiKwik Company Overview
Bipin Preet Singh and Upasana Taku co-founded MobiKwik, which was an initially mobile wallet service that streamlined the payment process for users. The business over time has included mutual fund investing, loans, peer to peer lending and personal finance features in its product offerings. The company has been focusing on expansion due to which it launched an IPO in 2024 and raised โน572 crores. It has its head office in Gurgaon, Haryana.
Business Model of MobiKwik
MobiKwik operates a fintech platform offering digital payments, digital credit (Buy Now Pay Later or BNPL), and financial services. Revenue sources include transaction fees, lending commissions, merchant services, and financial product distribution. Key offerings include MobiKwik ZIP (BNPL), Zaakpay (payment gateway), and UPI transactions. The company focuses on scaling digital credit and expanding merchant solutions to drive growth.
Services Offered
- Digital Wallet: Enables users to store money digitally and make payments across a wide network of merchants.
- Buy Now, Pay Later (BNPL): Provides users with a line of credit for purchases, allowing deferred payments.
- Insurance Products: Offers various insurance options, including life, health, and accident coverage.
- Mutual Fund Investments: Facilitates investment in mutual funds directly through the platform.
- Payment Gateway (Zaakpay): Provides merchants with solutions to accept payments seamlessly.
Market Details of MobiKwik
| Current Market Price | โน272 |
| Market Capitalization (in โน Crores) | 2,116 |
| 52 Week High | โน698 |
| 52 Week Low | โน261 |
| Book Value | โน20.3 |
| P/E Ratio | 151 |
Financial Statements
Income Statement
| Particulars | FY2024 | FY2023 | FY2022 |
|---|---|---|---|
| Total Income | 8,903 | 5,611 | 5,432 |
| Total Expenses | 8,531 | 6,170 | 6,586 |
| EBITDA | 372 | -559 | -1,154 |
| Net Profit | 141 | -838 | -1,282 |
Balance Sheet
| Particulars | FY2024 | FY2023 | FY2022 |
|---|---|---|---|
| Total Non-Current Assets | 1,645 | 1,636 | 1,767 |
| Total Current Assets | 6,901 | 5,507 | 6,594 |
| Total Equity | 1,626 | 1,427 | 2,165 |
| Total Non-Current Liabilities | 541 | 361 | 80 |
| Total Current Liabilities | 6,380 | 5,355 | 6,116 |
Cash Flow Statement
| Particulars | FY2024 | FY2023 | FY2022 |
|---|---|---|---|
| Cash flow from operating activities | -221 | 270 | -3,206 |
| Cash flow from investing activities | 271 | -7 | -848 |
| Cash flow from financing activities | 35 | 180 | 3,294 |
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SWOT Analysis of MobiKwik
The SWOT analysis of One MobiKwik Systems is given below:
Strengths
1. Diverse Service Portfolio
The marketing strategy of One MobiKwik Systems stands out with its wide range of offerings catering to multiple consumer and merchant needs. It offers a digital wallet for smooth payments, Buy Now Pay Later (BNPL) facilities for flexible financing, insurance solutions, and investment opportunities in mutual funds. By combining financial products and payment solutions, MobiKwik creates a holistic ecosystem that attracts diverse user groups and enhances customer retention.
2. Large User Base
With more than 161 million registered users and about 4.26 million merchants, MobiKwik has a strong foothold in the Indian fintech ecosystem. A large user base, aside from generating high volumes of transactions, also gives the company a competitive advantage that allows cross-selling of its other products and services.
Weaknesses
1. Profitability Challenges
MobiKwik, despite reporting substantial revenue growth, has reported operating losses for several years and recently began reporting profits. It remains to be seen if the business model is sustainable, particularly in an extremely competitive environment. The companyโs profitability would need to be further strengthened with long-term financial stability through cost optimization and high-margin services.
2. Market Competition
MobiKwik operates in a competitive industry. It competes with key players such as Paytm, Google Pay, and PhonePe, which also provide similar products and services and have a bigger market share in specific segments. Additionally, global players with enormous financial resources could further intensify the competition, which may be a challenge for MobiKwik to continue its growth momentum.
Opportunities
1. Digital Payment Adoption
India’s market for digital payments is growing rapidly with the government’s initiatives in this direction, including the Digital India program and the Unified Payments Interface (UPI). Increased penetration of smartphones and the affordability of data plans have contributed to the increased adoption of digital payments. The company can effectively leverage this trend to grow its user base, especially in semi-urban and rural areas where cashless transactions are still in their infancy.
2. Financial Inclusion Initiatives
One MobiKwik has a tremendous opportunity to cater to the underserved Indian population through customized microloans, low-cost insurance, and making investment in mutual funds or peer to peer lending more accessible. By fulfilling the needs of these sub-urban or rural areas, it can capitalize on a largely untapped vast market.
Threats
One Mobikwik operates in the Indian fintech sector due to which it must adapt quickly as new regulations emerge. Regulations related to data privacy, consumer protection, and digital lending may necessitate changes in its business model. Non-compliance or delay in getting adjusted to these regulatory compliances may attract penalty or loss of customer trust.
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Conclusion
One Mobikwikโs transformation from a small provider of mobile wallet into a platform that has numerous digital financial services has been exceptional and speaks of the innovation and ability of the company to adapt to changing regulations and rising competition.
Despite facing competition from larger fintech players, MobiKwik’s focus on BNPL services, digital lending, and financial inclusion positions it as a strong fintech contender in Indiaโs evolving digital economy. Moreover, the company consistently pushes forward the boundaries of financial inclusion and is making valuable contributions to the fast-growing digital economy in India.
Frequently Asked Questions (FAQs)
What is MobiKwikโs business model?
MobiKwik operates a fintech platform offering digital payments, BNPL (MobiKwik ZIP), and financial services. It earns revenue through transaction fees, lending commissions, merchant services, etc.
How did MobiKwik perform financially in FY2024?
MobiKwik reported total income of โน8,903 million in FY2024, with a net profit of โน141 million, marking a turnaround from previous losses in FY2023 and FY2022.
What are MobiKwikโs key strengths?
MobiKwik benefits from a large user base (161 million users, 4.26 million merchants) and a diverse service portfolio, including digital wallets, BNPL, insurance, mutual funds, and merchant payment solutions.
What challenges does MobiKwik face?
MobiKwik faces intense competition from Paytm, PhonePe, and Google Pay, along with regulatory challenges in digital lending, data privacy, and consumer protection laws.
How is MobiKwik leveraging Indiaโs digital payment growth?
MobiKwik is capitalizing on Indiaโs growing UPI adoption and financial inclusion initiatives by expanding its BNPL services, microloans, and digital financial products in underserved markets.
