MobiKwik Shares Plunge After Lock-In Expiry, Fall Below IPO Price Amid Mounting Losses
Digital payments firm reports Rs 56 crore Q4 loss, while user base and GMV continue to grow
Shares of digital payments platform MobiKwik took a significant hit on Wednesday, slipping over 9 per cent on the National Stock Exchange (NSE) following the expiry of the mandatory six-month lock-in period for pre-IPO shareholders. The sharp decline dragged the stock below its IPO issue price for the first time since listing.
The stock closed at Rs 244.25, marking a 9.34 per cent drop or Rs 25.15 loss in a single session. The fall came after the lock-in period—restricting early investors from selling their shares—ended, potentially triggering increased selling pressure.
This marks a sharp turnaround for One MobiKwik Systems Limited, which debuted on the bourses late last year at a premium of 58 per cent over its issue price of Rs 279. From its post-listing high of Rs 698, the stock has now erased nearly 64 per cent of its market value.
What Triggered the Decline?
The decline in MobiKwik’s stock came amid investor concerns over the company’s widening losses in the fourth quarter of FY25 and uncertainty about its path to profitability.
In the quarter ended March 2025, MobiKwik reported:
- Net Loss: Rs 56 crore, compared to Rs 0.6 crore in Q4 FY24
- Revenue: Rs 267.7 crore, marginally lower than Rs 269.4 crore in Q3 FY25
- EBITDA Loss: Rs 56.5 crore, up from Rs 47.6 crore in the previous quarter
Despite this, the company pointed to robust growth in its payments operations as a long-term positive indicator.
GMV and User Growth Offer Some Relief
MobiKwik highlighted strong performance in its payments segment as a bright spot in an otherwise challenging quarter.
- Gross Merchandise Value (GMV): Surged 203 per cent year-on-year to Rs 1,15,900 crore
- User Base: Reached 176.4 million users by the end of FY25
- New Users Added: 20.6 million during the fiscal year
The company attributed this growth to expanding adoption of its digital payment tools, including the MobiKwik Wallet, UPI, Pocket UPI, and Zaakpay (its proprietary payment gateway).
FY25 in Review: Revenue Up, Profit Turns to Loss
While revenue for the full fiscal year grew, profitability took a significant hit.
- Total Revenue (FY25): Rs 1,170.1 crore, up 33.7% from FY24
- Total Loss (FY25): Rs 121.5 crore, compared to a Rs 14 crore profit in FY24
This reversal from profitability has raised questions about MobiKwik’s ability to manage costs and improve margins even as its customer base and GMV expand.
Market Outlook: What Should Investors Expect?
The post-lock-in period selloff is a common market reaction, especially for tech firms with mounting losses. While user growth and rising GMV numbers are positive signals, analysts believe that MobiKwik’s path forward will hinge on how quickly it can achieve sustainable profitability.
MobiKwik’s public listing was part of a larger wave of Indian fintech IPOs aiming to tap into the country’s booming digital payments ecosystem. However, global economic uncertainty, rising interest rates, and investor risk aversion have dampened market enthusiasm for high-growth but loss-making tech firms.
Investor Takeaway
MobiKwik’s fall below its IPO issue price underscores the challenges tech IPOs face post-listing, especially after the expiry of lock-in periods. While the company is growing its user base and GMV significantly, the widening losses are likely to keep investor sentiment cautious.
The next few quarters will be crucial as the company works to cut costs, stabilize margins, and chart a clearer path toward profitability.
Quick Facts: MobiKwik Q4 FY25 Snapshot
- Stock Performance: Down 9.34% on June 18, closed at Rs 244.25
- IPO Price: Rs 279
- Post-Listing High: Rs 698
- Net Loss (Q4 FY25): Rs 56 crore
- GMV: Rs 1.15 lakh crore, up 203% YoY
- Users: 176.4 million (20.6 million added in FY25)