MobiKwik Steps Into Broking; Will It Face the Same Struggles as Paytm?

One MobiKwik stock is in focus after it made an announcement of entering the brokering business with a wholly owned subsidiary, Mobikwik Securities Broking Private Limited, with capital infusion plans of up to Rs. 2 Crore.

As the broking business is already very crowded, it is to be looked at how the company will gain market share in the broking sector. As Paytm and other companies struggled to gain market share after several years of business. 

Share Price Movement

With a market capitalization of Rs. 2,393 Crore, the stock of One Mobikwik Systems opened at Rs. 318.10, roughly the same level as yesterday’s close, and after opening, it made a high of Rs. 320, up 0.73 percent. Additionally, the shares of the company have declined by over 50 percent from its 52-week high of Rs. 698. 

Company Update

The company has incorporated a new company called Mobikwik Securities Broking Private Limited (MSBPL).  The main objective of MSBPL will be to carry out the business of dealing in shares, stocks, securities, debt instruments, commodities, currencies, and their derivatives. They will also be acquiring membership of various stock and commodity exchanges in India or elsewhere.

One Mobikwik will own a 100 percent stake in the entity, and the investment nature will be on a cash basis. The initial paid-up share capital will be Rs one lakh, and later, the company will infuse an additional capital of Rs. 2 Crores in one or more trances. 

Also read: Maharatna stock in focus after PNGRB approves capacity expansion of its gas pipeline network

Financial Highlights

The company reported a 17.46 percent YoY increase in revenue from Rs. 229 Crore in Q3FY24 to Rs. 269 Crore in Q3FY25. On a QoQ basis, the company reported a decrease of 7.56 percent in revenue from Rs. 291 Crore in the previous quarter.

They reported a Net profit of Rs. 5 Crore in Q3FY24, However, the Net profit changed to a Net loss of Rs. 55 Crore in Q3FY25. On a QoQ basis, the company reported an increase in Net loss from Rs. 4 core.  

About the Company

One Mobikwik systems is a publicly listed fintech company and the home to India’s largest digital wallet and is trusted by over 172 million users and more than 4.5 million merchants. Their platform-based business comprises of 2-sided payment networks, bridging payments for users and merchants. They cater to the financial needs of our users via payments, investments, and consumer credit. On the merchant side, they aim to empower their businesses as their primary payment partner by offering a range of financial services such as QR, Soundbox, EDC machine & more.

Written By Abhishek Das

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