Subscribe for One Mobikwik Systems Ltd IPO; KR Choksey

KR Choksey, has come out with its report on One Mobikwik Systems Ltd. The research firm has recommended to “ Subscribe” the ipo in its research report as on December 10 2024.

Broker Research

December 10, 2024 / 14:21 IST

IPO

KR Choksey, One Mobikwik Systems Ltd

MobiKwik's business model revolves around a two-sided payments network that connects consumers and merchants, with core offerings spanning both payment and financial services. Its payment services include facilitating transactions through MobiKwik Wallet, UPI, cards, and MobiKwik ZIP for utility bill payments, merchant payments, and money transfers. Merchants also benefit from these payment methods, along with QR codes, Soundbox, and EDC devices. The company's financial services division encompasses MobiKwik ZIP (buy now, pay later), ZIP EMI (personal loans), and investment products such as mutual funds, digital gold, and fixed deposits. The company’s subsidary, Zaak ePayment Services Private Limited (Zaakpay) functions as a payment gateway, processing transactions for both MobiKwik users and external merchants. The company has strategically shifted towards higher-margin financial services, capitalizing on its existing payment services user base to fuel this transition. The company’s continued growth will depend on its ability to expand its financial services offerings, grow its merchant network, and navigate the evolving competitive and regulatory landscape in India’s fintech industry.

Valuation and Outlook

The post issue Price to Sales of 2.5x seems reasonable compared to it’s peers. Considering these factors, we assign a “SUBSCRIBE” rating to MobiKwik IPO.

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