In a significant market movement today (February 3), shares of fintech major MobiKwik experienced a sharp decline of 5.1%, dropping to INR 398 during intraday trading on the BSE, highlighting the volatile nature of tech stocks in the current market climate.
The stock partially recovered to trade at INR 402.80 by 12:15 PM, representing a 3.96% decline, with the company’s market capitalization standing at INR 3,127.26 Cr. Trading volume remained significant, with 2.4 Lakh shares changing hands during this period.
“The current market volatility, particularly in the fintech sector, reflects broader economic concerns rather than company-specific issues,” notes Dr. Ramesh Kannan, Director of the Chennai Financial Markets Institute. “MobiKwik’s recent CBDC initiative with RBI and Yes Bank demonstrates their continued innovation in the digital payments space.”
The stock’s performance comes at a crucial time for Tamil Nadu’s fintech ecosystem, which has been closely monitoring MobiKwik’s market behavior since its December 18 debut, when it listed at a premium of 58.5% at INR 442.25 against its IPO price of INR 279.
While showing a modest 3% return over the past five days, the stock has struggled in the longer term, delivering a negative return of 23.96% over the last month. The current price represents a 5.16% decline from its listing price, mirroring broader market concerns.
“For Tamil Nadu’s growing fintech sector, MobiKwik’s performance serves as both a cautionary tale and an opportunity,” explains Venkatesh Subramaniam, CEO of Chennai Fintech Association. “The focus needs to remain on fundamental business metrics while building innovative solutions like their recent CBDC wallet.”
The company’s financial performance shows mixed signals, with Q2 FY25 reporting a net loss of INR 3.59 Cr compared to a profit of INR 5.22 Cr in the previous year. However, revenue operations showed strong year-over-year growth of 42%, reaching INR 290.65 Cr.
The broader market context includes anticipated changes in monetary policy, with the RBI expected to reduce the repo rate from 6.5% to 6.25% in its upcoming announcement on February 7. This decision could significantly impact Tamil Nadu’s fintech startups, particularly those in the digital payments space.
For Tamil Nadu’s startup ecosystem, MobiKwik’s market performance and strategic initiatives, particularly in the CBDC space, provide valuable insights for local fintech ventures planning their growth and potential public market debuts.
