Digital payments giant sees market cap soar to ₹4,838 crore as heavy trading volumes signal strong investor confidence in South India’s fintech sector
In a remarkable display of market confidence, shares of One Mobikwik Systems witnessed a dramatic surge of 35% from Monday’s low, reaching a new high of ₹630 on Tuesday. The company’s stellar performance on the National Stock Exchange (NSE) highlights the growing prominence of fintech companies in Tamil Nadu’s evolving startup ecosystem.
The fintech giant’s shares have demonstrated exceptional momentum, skyrocketing 126% above their initial issue price of ₹279 since their December 18 debut. This impressive rally, marked by heavy trading volumes of 60.18 million equity shares across NSE and BSE, underscores the robust investor appetite for technology-driven financial services companies in South India.
Mobikwik’s remarkable market performance reflects its strong operational foundation, serving over 161 million users and 4.26 million merchants across India. The company’s significant presence in Tamil Nadu has contributed to its success, with its digital financial services reaching 99% of India’s pin codes, including extensive coverage in the state’s tier-2 and tier-3 cities.
“Tamil Nadu’s supportive startup ecosystem and tech-savvy population have been instrumental in our growth journey,” says Bipin Preet Singh, Co-founder and CEO of Mobikwik. “The state’s robust digital infrastructure and focus on financial inclusion align perfectly with our mission to democratize financial services.”
The company’s impressive financial metrics tell a compelling growth story. With payment GMV growing at an annual rate of 45.88% and ZIP GMV (Disbursements) increasing at 112.16% annually from FY22 to FY24, Mobikwik has demonstrated strong execution capabilities. The company achieved profitability at both EBITDA and PAT levels in FY24, with revenue growing at a 29% CAGR to reach ₹875 crore.
Dr. Sridhar Mitta, a prominent tech industry veteran and advisor to the Tamil Nadu Startup and Innovation Mission, notes, “Mobikwik’s success represents a significant milestone for Tamil Nadu’s fintech ecosystem. It validates our state’s potential to nurture and scale digital financial services companies that can compete at the national level.”
The company’s expansion in Tamil Nadu has been particularly noteworthy, with 72% of its digital loan disbursements occurring in Tier 3+ locations. This achievement aligns with the state government’s financial inclusion initiatives and demonstrates the potential for fintech innovation in traditionally underserved markets.
Mobikwik’s wealth management vertical has shown exceptional growth, with Assets Under Administration (AUA) soaring from ₹323.68 crore in FY22 to ₹6,692.85 crore by June 2024. This growth has created new opportunities for financial services professionals in Tamil Nadu, contributing to the state’s growing reputation as a fintech hub.
The company’s success is expected to catalyze further investment in Tamil Nadu’s fintech sector, potentially attracting more startups and encouraging existing companies to expand their operations in the state. Industry analysts predict this could lead to increased job creation and technological innovation in the region.
Looking ahead, Mobikwik’s plans to introduce additional services in insurance and investments could further strengthen Tamil Nadu’s position in India’s financial services landscape. The company’s focus on operational efficiency and customer acquisition aligns with the state’s digital transformation goals and could serve as a blueprint for other aspiring fintech startups in the region.
