Indian Accounting Research Analyst, Trudence Capital Advisors

Nitin Mangal

Nitin Mangal is a Research Analyst with more than 15 years of experience in Indian equities. He is Pioneer of Corporate Governance and Accounting Research in Indian Market and has successfully developed product for Institutional Investors named as "Analysis Beyond Consensus" during his association with Edelweiss Securities Ltd, Mumbai. Later during the career, he has worked with Veritas Investment Research Corporation, Canada as Asia Consultant covering Indian and US equities. He has been profiled by leading financial newspapers such as Wall Street Journal, Business Standard etc

Indian Accounting Research Analyst

Trudence Capital Advisors

Trudence Capital Advisors Private Limited is a SEBI-registered Research Analyst, holding SEBI registration number INH000015747. Our firm is dedicated to providing independent and unbiased research on Indian mid to large-cap companies. Trudence Capital is known for its counter-consensus views, with a focus on forensic research and on-ground primary investigations. Our research approach is thorough, involving detailed analysis of accounting practices and governance, alongside extensive channel checks.

Independent & Unbiased Research

Equity Capital Markets

One Mobikwik Systems / Equity Capital Markets

It is not surprising to see a fresh IPO filing of a new-age tech, internet platform company every week. In this insight, we talk about another fintech payments company, <a href="https://www.smartkarma.com/entities/one-mobikwik-systems-ltd" target="_blank" data-smartkarma-citation="entities:33952:1" rel="noopener">One Mobikwik Systems (1235487D IN)</a> (Mobikwik) who is one of the nearest competitors to <a href="https://www.smartkarma.com/entities/paytm-mobile-solutions-pvt-ltd" target="_blank" data-smartkarma-citation="entities:26149:1" rel="noopener">Paytm (PAYTM IN)</a> . While Paytm is an entire universe in itself; Mobikwik's services have a narrower sphere albeit still varied to some extent in terms of product offerings.Mobikwik was incorporated in 2008, and since then it has established itself as one of the pure-play payments company, justified by the consumer payments segment contributing nearly 80% to the consolidated GMV and 72.5% to the consolidated topline. Consumer payments consists merchant fee when users transacts via MobiKwik Wallet, and certain convenience fees.The wallet segment contributes heavily to the topline for the company but it also has a lot of competitors. Hence, Mobikwik's key differentiating product becomes the BNPL segment (Buy now pay later) which was launched not a long time ago, and can be a potential game changer for the company. BNPL is effectively a credit product given to its users by lending partners via Mobikwik platform. BNPL includes short term 15-day cycle product which is interest fee (Zip), along with EMI products for a longer tenure having an interest component (Zip EMI).Mobikwik, in order to generate an additional source of revenue via leveraging, also offers payment gateway services i.e. Zaakpay to its merchants in return for a fee. Mobikwik may have a diverse stream of payments and credit revenue, but it, however, suffers from a plethora of discomforts. The company has a negative net worth (Ind AS) since F19 and has a very poor visibility of any profits in the short-mid term, although it has reported positive segment-wise results. Moreover, operations were seriously affected in F21 and they don't seem to be a stand-out, especially when other competitors like Paytm are lurking around. The balance sheet issues extend to incorrect treatment and some puzzling line items. Final nail in the coffin is seen in the form of several regulatory and legal issues, which can put Mobikwik in a fix.

It is not surprising to see a fresh IPO filing of a new-age tech, internet platform company every week. In this insight, we talk about another fintech payments company, One Mobikwik Systems (1235487D IN) (Mobikwik) who is one of the nearest competitors to Paytm (PAYTM IN) . While Paytm is an entire universe in itself; Mobikwik's services have a narrower sphere albeit still varied to some extent in terms of product offerings.Mobikwik was incorporated in 2008, and since then it has established itself as one of the pure-play payments company, justified by the consumer payments segment contributing nearly 80% to the consolidated GMV and 72.5% to the consolidated topline. Consumer payments consists merchant fee when users transacts via MobiKwik Wallet, and certain convenience fees.The wallet segment contributes heavily to the topline for the company but it also has a lot of competitors. Hence, Mobikwik's key differentiating product becomes the BNPL segment (Buy now pay later) which was launched not a long time ago, and can be a potential game changer for the company. BNPL is effectively a credit product given to its users by lending partners via Mobikwik platform. BNPL includes short term 15-day cycle product which is interest fee (Zip), along with EMI products for a longer tenure having an interest component (Zip EMI).Mobikwik, in order to generate an additional source of revenue via leveraging, also offers payment gateway services i.e. Zaakpay to its merchants in return for a fee. Mobikwik may have a diverse stream of payments and credit revenue, but it, however, suffers from a plethora of discomforts. The company has a negative net worth (Ind AS) since F19 and has a very poor visibility of any profits in the short-mid term, although it has reported positive segment-wise results. Moreover, operations were seriously affected in F21 and they don't seem to be a stand-out, especially when other competitors like Paytm are lurking around. The balance sheet issues extend to incorrect treatment and some puzzling line items. Final nail in the coffin is seen in the form of several regulatory and legal issues, which can put Mobikwik in a fix.

One Mobikwik Systems

Mobikwik IPO: Secure Enough?