Why MobiKwik Share Price is Falling

Stock markets can be like roller coasters-thrilling on the way up but stomach-churning on the way down. An acute example of this is MobiKwik's share price trajectory.

Investors who once saw promise in the fintech company are now watching its share price tumble, uncertain about what lies ahead.

On Monday, this week MobiKwik share price slipped 8.1%.

This sharp drop has caught the attention of investors. The stock has hit a 52-week low, and market sentiment remains weak.

What's behind this sudden decline? Is it just market volatility, or are deeper issues at play?

Let's take a closer look at the factors dragging MobiKwik's share price down.

#1 Lock-In Period Expiry

A lock-in period is a restriction that prevents certain shareholders from selling their shares for a specific time after a company's initial public offering (IPO). This is usually imposed on pre-IPO investors, promoters, or employees who were allotted shares before the company went public.

The purpose of a lock-in period is to maintain price stability and prevent an immediate sell-off that could cause excessive volatility.

For MobiKwik, the three-month lock-in period recently ended, releasing 4.6 million (m) shares, which account for 6% of the company's total shares, into the open market.

With these shares now freely tradable, investors who had been waiting for the restriction to lift can choose to sell their holdings.

The expiry of the lock-in period often affects investor sentiment negatively. A sudden increase in available shares can create selling pressure, leading to a drop in the stock price. If large investors begin offloading their holdings, it signals a lack of confidence in the company's future growth.

Retail investors may also react by selling their shares out of fear of further decline. This combination of increased supply and weakened sentiment contributed to the sharp fall in MobiKwik share price.

Over the past month its share price tumbled 25.8% due to weak quarterly results. Let's take a look at the company's Q3 earnings.

#2 Weak Quarterly Results

MobiKwik reported disappointing financial results for the third quarter ending December 2024, with a net loss of Rs 5.2 billion (bn). This is a sharp decline compared to a net loss of just Rs 291 m in the previous quarter and a profit of Rs 545 m in the same quarter last year.

The company's losses have widened due to higher customer acquisition costs, increased fixed expenses, and rising user incentives, raising concerns about its profitability.

Revenue from operations stood at Rs 26.8 bn, down from Rs 29 bn in the previous quarter but higher than Rs 22.7 bn a year ago. The 7.4% decline in revenue quarter-on-quarter (QoQ) indicates slowing business momentum.

However, on a year-on-year (YoY) basis, revenue grew 18.1%, driven by higher transaction volumes. Despite this growth, the company has been unable to translate increased revenue into profits.

Total expenses surged to Rs 31.5 bn, up from Rs 28.7 bn in the previous quarter and Rs 21.8 bn a year ago. This rise in expenses has put significant pressure on margins, making it harder for MobiKwik to achieve profitability.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA) fell into negative territory at Rs 4 bn, compared to a positive Rs 827 m last quarter and Rs 1.2 bn a year ago. The decline in EBITDA reflects the company's struggle to manage its costs despite growing revenue.

The weak Q3 results have shaken investor confidence, as MobiKwik has transitioned from a profitable position last year to significant losses.

Investors are uncertain about the company's ability to turn around its financial performance.

What Next?

MobiKwik plans to expand its financial product distribution, aiming to offer services beyond lending, such as savings and investments. This strategy seeks to diversify revenue streams and reduce reliance on unsecured lending.

The company is also focusing on cost management to improve profitability. By maintaining a frugal approach to innovation and operations, MobiKwik aims to achieve sustainable growth.

Additionally, MobiKwik is exploring opportunities in the digital payments ecosystem, including potential collaborations and new product offerings. These initiatives aim to enhance user engagement and transaction volumes.

To improve financial performance, the company is prioritising operational efficiency while maintaining a balance between growth and profitability. Expanding its user base remains a key focus, with targeted efforts to onboard more merchants and customers.

MobiKwik is also working on strengthening risk management in its lending operations, ensuring a more stable financial structure. Future growth will depend on how effectively it executes these plans while adapting to evolving regulatory and market conditions.

How MobiKwik Share Price has Performed Recently

In the past five days, MobiKwik share price is down about 14%, including today's fall. Ever since its listing in December 2024, it has tumbled 51% from its IPO price.

The stock touched its 52-week high of Rs 698.3 on 26 December 2024 and a 52-week low of Rs 231 on 17 March 2025.

About MobiKwik

MobiKwik is India's leading digital banking platform, offering a wide range of financial products for both consumers and merchants, including payments, digital credit, and investments.

It provides mobile wallets, buy-now-pay-later (BNPL) services, and payment gateway solutions.

Over the years, the company has built a strong user base and is known for its innovative approach in the fintech space.

It competes with giants like Paytm and PhonePe.

For more details about the company, you can have a look at MobiKwik's factsheet.

And to know what's moving the Indian stock markets today, check out the most recent share market updates here.

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