MobiKwik’s public defiance
MobiKwik has lived through a painful existence marred by challenges that would have sunk a lesser startup. In its desire to go public, it continues on the path of pain.
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Editor's note: Things couldn’t have been worse for MobiKwik. In the fiscal year ended 31 March 2021, the company’s operating income dropped 20%, from Rs 355.68 crore in the previous year to Rs 288.57 crore. The company recorded a loss of Rs 111.30 crore in 2020-21, compared to Rs 99 crore in 2019-20. It would seem COVID-19 battered the hell out of MobiKwik’s fledgling business. Cash on hand dropped to Rs 60 crore as of 31 March, just about enough to cover a year’s wage bill; it managed to to raise $5 million (around Rs 37 crore) in April from a handful of small-time investors, and then another $20 million (around Rs 150 crore) in June from the Abu Dhabi Investment Authority as pre-IPO funding. And yet with the worst numbers on the scoreboard, MobiKwik has decided that it will go public. The move gives rise to several questions—most importantly, why now? Bipin Preet Singh and Upasana Taku’s digital wallet company is 12 years old. The Gurugram-based company was once a serious contender in the digital payments fight, when wallets were the …
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