MobiKwik share price dips over 6%; dips below IPO price

June 18, 2025 | Mumbai – Shares of MobiKwik, the digital payments and financial services firm, fell over 6% in Wednesday's trade, slipping below its IPO issue price for the first time since its debut earlier this year. The sharp decline reflects growing investor caution amid a broader market pullback and rising concerns over fintech valuations in a competitive landscape.

Steep Decline in Day Trade

At around 11:30 AM IST, MobiKwik stock was trading at ₹88.10, down 6.4% from its previous close of ₹94.10 on the NSE. The current level is also lower than the IPO issue price of ₹94, raising concerns among retail investors and short-term traders who entered during the listing.

MobiKwik was listed on Indian exchanges in February 2025 after a much-anticipated IPO that raised ₹700 crore, primarily to fund growth in its Buy Now Pay Later (BNPL) vertical and digital wallet business.

Analysts Cite Valuation and Competition Pressures

Market analysts attributed the sharp fall to a combination of high valuations at the time of IPO and lack of consistent earnings visibility in the near term.

“MobiKwik’s fundamentals show promise, especially in terms of user acquisition and digital wallet activity. But the market is now placing higher scrutiny on profitability and sustainable growth, especially with Paytm and PhonePe upping their game,” said Rajeev Arora, fintech analyst at Prabhudas Lilladher.

“With tightening regulatory oversight in the BNPL segment and slower monetisation from smaller towns, pressure on margins is likely to persist,” Arora added.

MobiKwik has been banking on a diversified digital financial ecosystem, ranging from mobile recharges and utility payments to insurance, credit, and small-ticket loans. However, it still operates in a space dominated by larger players with deeper capital reserves and more advanced technological stacks.

Broader Market Context Adds to Weakness

Wednesday’s decline also coincided with a broader pullback in small-cap and new-age tech stocks, with the Nifty Smallcap 100 index down nearly 1.2% intraday. Global cues remained tepid, with US Fed officials reaffirming a higher-for-longer interest rate stance, which weighed on risk appetite.

The Indian fintech sector has also seen increased regulatory tightening, especially in the BNPL and digital lending domains. Recent RBI circulars calling for better KYC, limits on unsecured lending, and scrutiny of wallet-linked credit lines have rattled several companies in the space.

Performance Since Listing

Since its listing, MobiKwik has seen moderate interest from institutional investors but has underperformed expectations in terms of sustained post-IPO momentum. The stock had listed at a modest 3.5% premium but failed to build on initial gains. As of today, it has corrected over 12% from its listing day high of ₹101.50.

MobiKwik’s Q4 FY25 results, released in early May, showed a 15% rise in revenue year-on-year, but losses widened due to increased marketing and customer acquisition costs. Operating expenses grew 22%, while gross margins slightly contracted.

Investor Sentiment Turns Cautious

Retail investor sentiment has taken a hit following the decline, especially as many had bet on the company mimicking the post-IPO rally seen in other fintech players like Zaggle and CredAvenue.

“I invested in the IPO believing in India’s digital growth story, but it’s disappointing to see the stock dip below issue price so soon,” said Amit Khurana, a retail investor from Pune.

“I still believe the business model has merit, but perhaps the IPO was priced too aggressively,” he added.

Meanwhile, mutual fund holding data suggests that only a few domestic funds had exposure to MobiKwik at listing, limiting institutional support at current levels.

What’s Ahead for MobiKwik?

Experts say MobiKwik’s long-term story hinges on its ability to pivot towards profitable lending, improve customer stickiness, and find a balance between growth and margins.

“There’s still a viable market for MobiKwik’s services, especially in Tier II and III cities. But investors now want execution proof—growth alone doesn’t cut it anymore,” said Tanvi Mehra, VP of Investments at a Mumbai-based VC fund.

The company’s next earnings report and any strategic tie-ups or capital infusions may act as catalysts. Investors are also eyeing how MobiKwik responds to RBI compliance norms and whether it can build scale in digital credit while managing risk effectively.

Investor Outlook

With the stock dipping below its IPO price, market participants suggest a wait-and-watch approach. While MobiKwik remains a key player in India’s digital finance ecosystem, current valuations may not justify aggressive entry in the absence of clear profitability metrics.

“For investors holding the stock, this is a time for patience. Averaging down could be considered if there’s a long-term outlook, but don’t expect quick turnarounds,” advised Sudeep Shah, Head of Technicals at Axis Securities.

For new investors, analysts recommend watching key levels—₹85 as short-term support and ₹98 as a resistance zone—before making any decisions.