MobiKwik Q2 loss narrows sequentially to ₹3.5 cr; stock jumps up to 14%

One Mobikwik Systems, which recently made its debut on stock market, released its September quarter earnings report today, pushing the stock up to 14%. The fintech stock touched a high of ₹638 in intraday trade, before settling at ₹609.70, up 9.25%, with a market capitalisation of ₹4,736.5 crore.

The sentiment was lifted after the payment solutions company reported sequential improvement in its financial performance, posting   a net loss of ₹3.5 crore in Q2 FY25 as compared to a loss of ₹6.6 crore for the quarter ending June 2024. Mobikwik posted a profit of ₹5.2 crore in September quarter of the previous fiscal. The Q2 loss was attributed to ongoing investments focused on driving the company’s next phase of growth.

The revenue from operations jumped 43% year-on-year to ₹291 crore in Q2 FY25, as compared to ₹203 crore in the same quarter of the previous year.

Founded in 2009 by Bipin Preet Singh and Upasana Taku, Mobikwik shares made its debut on the stock exchanges on December 18, 2024. The shares of Mobikwik listed at ₹440 apiece on the NSE, a premium of 57.7% over the issue price of ₹279. At the current market price, the stock trades 118% over the issue price.

The IPO of One MobiKwik Systems, which was completely fresh issue of equity shares, received strong response from investors, especially from retailers, as the issue was subscribed 119.38 on the last day of bidding. The retail portion was subscribed 134.67 times bidding, while non-institutional investors (NII) segment was booked 108.95 times. The portion set aside for qualified institutional buyers (QIB) was subscribed 119.50 times.

The Gurugram-based payment platform intends to use IPO proceeds from its fresh issuance to the extent of ₹150 crore for funding organic growth in its financial services business; ₹135 crore for funding organic growth in its payment services business; ₹107 crore for Research and development investment in data, ML and AI and product and technology; ₹70.28 crore for capital expenditure for its payment devices business; and general corporate purposes.

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