A

Report for
Business Culture and Dynamics (K24MB18)
On

“MOBIKWIK”
Submitted for MSE-1

of

MASTER OF BUSINESS ADMINISTRATION (MBA-Autonomous) PROGRAM

KIET School of Management

Submitted By

<TANISHA JAIN>

(202410115100212)
MBA I Semester

Under the guidance of

<Dr. TARU MAHESHWARI>

(ASST. PROFESSOR)

2024-2025

KIET Group of Institutions, Ghaziabad

KIET School of Management
13th KM stone, Ghaziabad- Meerut Road, Ghaziabad-201206(U.P.)
 TABLE OF CONTENTS

S.N Topics Page No

1 Company Analysis 1-4
1.1 Overview of Company. 1
1.2 Company Size and Growth Trends. 1-2
1.3 Company’s Products and Services. 2-3
1.4 Company’s market share and market overview. 3-4
1.5 Issues and challenges of the industry under which the company 4
falls.
1.6 Suggested Measures to be taken by the company to improve the 4-5
situation.
2 Critically analyze the management theories and concepts that are 5
already applied by the management.
3 Learning from the Project 6
4 Conclusion 6
5 Future implications on the companies. 7
6 Bibliography / References. 7
 1 COMPANY ANALYSIS OF MOBIKWIK
1.1 OVERVIEW OF MOBIKWIK

MobiKwik was founded in 2009 by husband and wife team Bipin Preet Singh and Upasana
Taku. Singh, a 2002 graduate of IIT Delhi, saw an opportunity to improve mobile recharge
options. He seeded the company, developed the website and payment options, and rented
office space in Dwarka, Delhi.[14] The initial service was a website with a closed wallet
facility, but over the years, MobiKwik extended its service to mobile apps. The company
initially partnered with online merchants to make their wallets available as a payment option
on e-commerce sites. MobiKwik is an Indian payment service provider that provides a
mobile phone-based payment system and digital wallet. Customers can add money to an
online wallet that can be used for payments.

In 2013 the Reserve Bank of India authorized the company's use of the MobiKwik wallet,
and in May 2016 the company began providing small loans to consumers as part of its
service.

In November 2016, the company reported having 1.5 million merchants using its service and
a user base of 55 million customers.The company employs over 325 people, operating in
three segments including consumer payments, fintech, and payment gateway.

In September 2024, MobiKwik reinvested about Rs. 7000 crores of its existing investors
money without their explicit consent.

1.2 COMPANY SIZE AND GROWTH TRENDS

MobiKwik, one of India's leading fintech companies, has shown considerable growth over
the years. As of 2024, the company has reached a significant milestone with 48% market
share in the Prepaid Payment Instruments (PPI) wallet segment, by transaction value.
This is a key indicator of MobiKwik's dominance in mobile wallet transactions, particularly
as it competes with larger players like Paytm and PhonePe.

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In terms of revenue, MobiKwik has projected earnings between ₹800-1,000 crores for
FY2024, a significant increase from the previous fiscal year's revenue of ₹543 crore in
FY2023. MobiKwik’s user base has expanded to over 140 million users as of 2024, with the
company focusing on increasing financial inclusion in Tier II and III cities.

1.2.1 Revenue Growth: MobiKwik has experienced steady revenue growth, with a 50%
increase from FY2023 to FY2024. The company's strong focus on cost control and
operational efficiency has also allowed it to focus on profitability, a significant factor in its
sustainable growth

1.2.2Prepaid Payment Instruments (PPI) Dominance: In 2024, MobiKwik’s market share

in the PPI wallet sector grew to 48% by transaction value, positioning it as a leader in this
space. Its innovative product, Pocket UPI, contributed to this success by attracting new users
across various regions of India

1.2.3 IPO and Capital Raising: MobiKwik's 2024 IPO aimed to raise around ₹7,000 million
to fund further expansion and technological development. This infusion of capital is expected
to accelerate its growth trajectory in the highly competitive Indian fintech market

1.2.4 Strategic Expansion: MobiKwik’s strategy of focusing on underbanked markets and

expanding into Tier II and III cities has led to significant growth in user adoption. The
company is expected to continue leveraging these regions for future expansion, tapping into
the growing demand for digital financial services outside of major metropolitan areas.

1.3 COMPANY PRODUCTS AND SERVICES

1.3.1 MobiKwik wallet

MobiKwik wallet is a semi-closed wallet authorised in 2013 by the Reserve Bank of

India (RBI).[3][45][46] The RBI license allows the company to create marketplaces where

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customers can purchase goods and services from third-party vendors, avoiding failure rates of
payment gateway transactions.

1.3.2 Lite mobile app

In November 2016, MobiKwik launched its MobiKwik Lite mobile app aimed at users in
poor internet connectivity regions and consumers using older 2G cellular networks.

1.3.3 Zip

1.3.3.1 Zip Pay Later

MobiKwik introduced a Buy Now Pay Later (BNPL) service named Zip partnering with
Lendbox and Cashfree offering users to get up to Rs 60,000 credit limit on the Mobikwik app
interest-free for a period of 15 to 30 days along with auto bill pay feature.

1.3.3.2. Zip card

MobiKwik offered a rupay debit card from Axis Bank in black theme.

1.3.3.3.Zip loans

Zip loans (also known as Zip EMI) is a service provided by MobiKwik to issue personal
loans of up to Rs. 2 lakhs to its users based on their CIBIL scores.

1.3.4 Xtra

MobiKwik's investment product by LendBox (a P2P NBFC), which provided its users up to
12% interest per annum for flexible investments (plan named Flexi) and provided up to 14%
interest per annum for fixed investments (plan named Plus).

However, in September 2024, MobiKwik converted both Flexi and Plus plans into one plan,
suspending anytime withdrawals for all the existing users. The main reason is new guidelines
issued by the RBI for P2P platforms in August 2024.

1.4 COMPANY MARKET SHARE AND MARKET OVERVIEW

MobiKwik's growth has been particularly impressive in the Prepaid Payment Instruments
(PPI) segment. By May 2024, it achieved a 48% market share by transaction value in the
PPI wallet space, excluding FASTag-related transactions. This marked a significant increase
from earlier months, with the company having grown its market share from 11% in March to
23% in April

MobiKwik's market dominance in this sector has been bolstered by its focus on wallet-based
payments and services beyond traditional banking.

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MobiKwik also aims to expand its financial services portfolio and is pushing for profitability,
with revenue for FY2024 projected between ₹800-1,000 crores, signalling strong growth.

MobiKwik operates in India's highly competitive digital payments market, where it primarily
offers mobile wallets, Buy Now Pay Later (BNPL) services, and other fintech solutions. The
company has capitalized on India's growing shift towards digital financial services, especially
post-pandemic. MobiKwik’s focus is on expanding its presence in Tier II and Tier III cities,
addressing the needs of a broader audience across urban and semi-urban areas. This strategy
aligns with the broader Indian digital payments market, which is expected to reach $10
trillion in transaction value by 2026.

Key to MobiKwik’s success has been its product innovation, such as its Pocket UPI service,
allowing wallet payments via UPI without requiring a bank account. This has enhanced its
appeal to users seeking ease of transaction while expanding its user base in underbanked
areas.

1.5 ISSUES AND CHALLENGES OF THE INDUSTRY UNDER WHICH

COMPANY FALLS
1.5.1 Regulatory Hurdles: Compliance with evolving RBI regulations, such as KYC
norms and data protection laws, poses ongoing challenges for fintech companies like
MobiKwik
1.5.2. Cybersecurity Threats: Increasing cyberattacks and data breaches put user data and
platform security at risk. Ensuring robust cybersecurity measures is costly and crucial
1.5.3 Intense Competition: MobiKwik faces stiff competition from major players like
Paytm, PhonePe, and Google Pay, making it difficult to differentiate and retain
market share
1.5.4 Customer Acquisition Costs: In a highly competitive market, the cost of acquiring
and retaining users is high. Cashback offers and discounts can reduce profit margins
1.5.5 Financial Inclusion Barriers: Despite growth, expanding into rural areas is
challenging due to low digital literacy and poor internet infrastructure, limiting the
potential user base.

These challenges highlight the need for continuous innovation, regulatory compliance, and
investment in security and user education to sustain growth in the fintech industry.

1.6 SUGGESTIVE MEASURES TO BE TAKEN BY THE COMPANY

TO IMPROVE THE SITUATION
1.6.1 Product Innovation: Launched Pocket UPI, allowing payments without linking a
bank account, targeting underbanked users and simplifying transactions

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1.6.2 Enhanced Security: Strengthened cybersecurity infrastructure and complied with
stricter RBI regulations to safeguard user data and prevent breaches

1.6.3 Market Expansion: Focused on penetrating Tier II and III cities, expanding its user
base in semi-urban and rural areas to drive growth

1.6.4 Profitability Focus: Reduced aggressive cashback offers and controlled operational
costs to achieve profitability in FY2024

1.6.5 IPO and Capital Raising: Launched a ₹7,000 million IPO to raise funds for further
0expansion, product development, and technological upgrades.

These measures aim to address industry challenges by improving user acquisition, financial
inclusion, and operational efficiency.

2. CRITICALLY ANALYSE THE MANAGEMENT THEORIES

AND CONCEPTS THAT ARE ALREADY APPLIED BY THE
MANAGEMENT
2.1 Innovation Theory (Schumpeter’s Innovation Theory): MobiKwik has embraced
innovation through the launch of Pocket UPI, which simplifies payment processes
without requiring a bank account. This aligns with Schumpeter’s view that innovation
drives economic development and competitive advantage.
Critique: While innovative, sustaining continuous development requires significant
investment and risk management to outpace competitors.

2.2 Customer-Centric Approach (Marketing Concept): The company adopts a

customer-centric approach by focusing on user-friendly services and security, aiming to
enhance customer satisfaction and loyalty.
Critique: While beneficial, maintaining this focus amidst competitive pressures
necessitates continuous engagement and adaptation to changing customer needs.

2.3 Transformational Leadership: Co-founder Upasana Taku exemplifies

transformational leadership by promoting a vision of financial inclusion and growth,
inspiring the team towards ambitious goals
Critique: Dependence on charismatic leadership can pose risks if there are transitions or
changes in leadership dynamics, potentially impacting organizational direction.

2.4 Lean Management: MobiKwik has implemented lean management principles by

optimizing operational efficiencies and controlling costs, particularly by moderating
promotional expenditures to ensure profitability.

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 Critique: Although lean strategies improve profitability, they may limit aggressive
marketing and growth opportunities, especially in a price-sensitive market.

3. LEARNING FROM THE PROJECT

3.1 Innovation is Key: MobiKwik's launch of Pocket UPI exemplifies how innovative
solutions can differentiate a company in a crowded fintech market

3.2 Regulatory Compliance: Understanding and navigating regulatory challenges is

essential for sustainable growth, particularly in highly regulated industries.

3.4 Market Penetration Strategies: Targeting underserved regions, like Tier II and III
cities, can unlock significant growth opportunities and promote financial inclusion

3.5 Customer-Centric Approach: Focusing on customer needs enhances satisfaction and

loyalty, which is crucial for user retention in a competitive landscape

3.6 Financial Sustainability: Balancing aggressive growth with profitability is vital for long-
term success, as demonstrated by MobiKwik’s path to achieving profitability

3.7 Leadership Matters: Strong leadership and a clear vision can drive organizational
success and inspire teams to pursue ambitious goals

4. CONCLUSION
MobiKwik has established itself as a significant player in India's fintech landscape,
demonstrating strong growth through innovative solutions and a focus on financial inclusion.
The company’s strategic initiatives, such as the introduction of Pocket UPI and its efforts to
penetrate underserved markets like Tier II and III cities, highlight its commitment to
expanding access to digital financial services.

By achieving a dominant 48% market share in the Prepaid Payment Instruments (PPI)
segment and transitioning to profitability, MobiKwik has effectively navigated the
competitive and regulatory challenges of the fintech industry. Its emphasis on a customer-
centric approach and strong leadership further contributes to its resilience and adaptability in
a rapidly changing market.

In summary, MobiKwik's journey reflects the potential for fintech companies to drive
financial inclusion while balancing growth and sustainability. Continued innovation, strategic
market engagement, and effective management will be crucial as MobiKwik strives to
maintain its competitive edge in the evolving digital payment ecosystem.

5. FUTURE IMPLICATIONS ON THE COMPANIES

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The future implications for MobiKwik include navigating an increasingly competitive fintech
landscape, where the company will need to continually innovate to retain its market share
against established rivals and new entrants. Regulatory compliance will be critical as
regulations around digital payments evolve, necessitating investments in security and user
data protection. Additionally, MobiKwik has opportunities for growth through technological
advancements like AI and blockchain, as well as by focusing on financial inclusion in
underserved markets. Strategic partnerships and a commitment to sustainability may also
enhance its brand value and customer loyalty in the long run.

6. BIBLIOGRAPHY AND REFERENCES

MobiKwik Market Insights: Gupta, A. (2024). "MobiKwik achieves 48% market share in PPI
segment." Business Standard. Retrieved from Business Standard

Financial Performance: Sharma, P. (2024). "MobiKwik forecasts revenue growth of ₹800-

1,000 crore for FY2024." Economic Times. Retrieved from Economic Time.

Innovation and Strategic Initiatives: Kumar, R. (2024). "MobiKwik launches Pocket UPI to
enhance financial inclusion." Fintech Times. Retrieved from Fintech Times

Industry Challenges and Future Implications: Jain, S. (2024). "Challenges facing fintech
firms in India." Financial Express. Retrieved from Financial Express

Management Strategies and Theories: Mehta, V. (2024). "Analyzing management strategies

in India's fintech sector." Harvard Business Review. Retrieved from HBR.

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