Payments and lending platform MobiKwik has started meeting prospective investors and is looking to bring out its IPO in the next 12 months, according to Chairperson, Cofounder & COO Upasana Taku.

“We are meeting people right now, we have a keen eye on the markets and we are looking for the right opportunity. We want to make sure that we come out with a successful offering that works for all shareholders,” Taku told businessline.

“We have matured as a company and now the only reason we have not been listed is because the markets haven’t been great. If markets are conducive, we will look to bring out our IPO in the next 12 months,” she said, adding that the fintech has been growing at a steady pace for a long time, which has a lot of interest and takers from a public market perspective.

MobiKwik reported revenue of Rs 385 crore for H1 FY24, up 58 per cent yoy, and a net profit of Rs 8 crore. On the back of around 15 per cent growth per month, the fintech aims to end the current financial year with Rs 900-1,000 crore revenue and profit after tax of Rs 20-25 crore.

Credit products lead the pack

Currently, 30-35 per cent of the revenue comes from the payments business and the remaining 65 per cent from distribution of credit products. Within credit, bulk of the revenue comes from two main products -- ’MobiKwik Zip’ which is the 30-day interest free credit line or credit card like product and ‘Zip EMI’ which a higher ticket 12-24 months personal loan product.

The average ticket size for ‘Zip’ is Rs 5,500 and for ‘Zip EMI’ is Rs 60,000. The company disburses credit of around Rs 1,100 crore per month, wherein 75-80 per cent customers are new-to-credit or thin-to-file and have no prior credit experience.

“We expect to disburse at least Rs 8,000 crore loans or around $1 billion by the end of FY24,” she said, adding that there are other investment products too but they are sub 1-year and not revenue accretive as yet but should account for 10-20 per cent of the revenue in FY25.

In the pipeline for next 2 years

MobiKwik is also adding more investment and merchant products and services such as insurance which should start panning out over the next 2 years, she added.

The platform is adding about 20 lakh customers per month and expects to grow its customer base of 14 crore by another 2 crore users in FY24. The focus is on the middle income segment, wherein 80 per cent users earn Rs 25,000-50,000 per month, are in the 23-38 year age group and are predominantly self-employed.

“We’re going after this bankable middle India population, which is a fast and upcoming number of 40-50 crore people, and offer them all the digital banking products on one application,” Taku said adding that the company’s objective remains wanting to “have a huge impact from a financial inclusion perspective and do it in a ‘for profit’ manner”.

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