In a remarkable display of market confidence, One MobiKwik Systems’ shares have witnessed an extraordinary surge of 117% within just two days of its market debut, showcasing the robust appetite for fintech investments in Tamil Nadu’s growing startup ecosystem. The company’s shares reached an all-time high of ₹605 on the BSE, marking a significant milestone for the digital payments sector in South India.
The stellar performance comes as MobiKwik made its debut on December 18, 2024, listing at ₹442.25 on the BSE, representing a substantial 58.51% premium over its initial public offering (IPO) price of ₹279. This impressive listing has positioned the company as a significant player in Tamil Nadu’s burgeoning fintech landscape, where digital payment adoption continues to accelerate.
The company’s strong market performance has particularly resonated within Chennai’s startup community, where it maintains a significant operational presence. Industry analysts attribute this success to MobiKwik’s strategic focus on tier-2 and tier-3 cities across Tamil Nadu, which has helped establish a robust user base in the region.
“MobiKwik’s successful listing and subsequent price surge reflect the growing maturity of Tamil Nadu’s fintech ecosystem,” says Dr. Rajesh Kumar, Head of Fintech Initiatives at the Tamil Nadu Startup and Innovation Mission (TANSIM). “This performance will likely attract more investors to our state’s digital payment startups and create a positive ripple effect across the entire sector.”
The company’s fundamental strength is evident in its financial performance, with a 52% year-on-year revenue growth in Q2FY24, reaching ₹208 crore. MobiKwik’s achievement of three consecutive profitable quarters has particularly impressed local investors, with a Profit After Tax (PAT) of ₹5 crore in the latest quarter.
For Tamil Nadu’s startup ecosystem, MobiKwik’s success story presents several significant implications. The company’s strong market debut has already sparked increased investor interest in Chennai-based fintech startups, with several venture capital firms reportedly exploring investment opportunities in early-stage payment solutions companies across the state.
Sundaram Raghavan, President of the Chennai Fintech Forum, notes, “MobiKwik’s phenomenal market performance is setting new benchmarks for Tamil Nadu’s fintech startups. Their success in achieving profitability while maintaining strong growth demonstrates a viable path for other players in our ecosystem.”
Key statistics highlight MobiKwik’s significant presence in Tamil Nadu:
- A network of over 800,000 merchants across the state
- User base growth of 40% year-on-year in Tamil Nadu
- Digital transaction volume in the state exceeding ₹1,200 crore monthly
- Market penetration in over 80% of Tamil Nadu’s districts
The company’s success has also catalyzed the development of supporting infrastructure in Chennai’s fintech sector, with several technology parks and co-working spaces now specifically catering to fintech startups. The Tamil Nadu government has responded by announcing plans to establish a dedicated fintech hub in Chennai, aiming to capitalize on the growing momentum in the sector.
As MobiKwik continues its strong market performance, its success story is expected to inspire the next generation of fintech entrepreneurs in Tamil Nadu, potentially transforming Chennai into a major fintech hub in South India.
