MobiKwik To Pick Up Additional 3.39% Stake In Blostem Fintech

MobiKwik Shares Drop 6% To Hit All-Time Low

SUMMARY

This acquisition is the second tranche of the share subscription and shareholders’ agreement that MobiKwik signed with Blostem in March last year

Back then, it agreed to invest in the equity shares of the B2B banking infrastructure company for an amount of INR 3 Cr in two tranches

Following this, MobiKwik paid the first tranche of INR 1.5 Cr in the same month for 3.40% of equity share in Blostem

Fintech major MobiKwik is acquiring an additional 3.39% stake in B2B banking infrastructure company Blostem Fintech Private Limited for INR 1.5 Cr.

In an exchange filing, MobiKwik said, “The company intends to invest a total of INR 1,49,91,640 for 3.39% equity shares of Blostem in a second tranche of the share subscription and shareholders’ agreement dated March 13, 2024.”

This acquisition is the second tranche of the share subscription and shareholders’ agreement that MobiKwik signed with Blostem in March last year.

Back then, it agreed to invest in the equity shares of the B2B banking infrastructure company for an amount of INR 3 Cr in two tranches.

Following this, MobiKwik paid the first tranche of INR 1.5 Cr in the same month for 3.40% of equity share in Blostem.

With this second tranche, MobiKwik’s total shareholding in Blostem is likely to be 6.79% of the share capital of Blostem on a fully converted and diluted basis, the fintech major said in an exchange filing today (February 21).

Founded in 2021 by Ravi Jain and Sandeep Garg, Blostem provides financial solutions with fixed deposit (FD) aggregation as its core offering.

As per the filing, Blostem built strategic partnerships with multiple banks and NBFCs, seamlessly integrating their financial products through its API solutions. It enables financial institutions, B2C platforms, and super apps to offer scalable and seamless financial products to end customers.

The Delhi-based Blostem reported revenue of INR 30.76 Lakh for the financial year ended March 31, 2024.

The development comes close to MobiKwik receiving its board’s nod to incorporate and invest in one or more wholly-owned subsidiaries as it explores new avenues to expand its business.

Before this, its cofounders Upasana Taku and Bipin Preet Singh also hinted that the company is eyeing an entry into new fintech verticals this year.

Apart from this, the company is also planning to segue into the insurance distributor space as it has already obtained the necessary licence from the Insurance Regulatory and Development Authority of India (IRDAI).

Shares of MobiKwik ended today’s trading down 3.6% at INR 311.20 on the BSE.

On the financial front, MobiKwik slipped into the red in the third quarter of the fiscal year 2024-25 (Q3 FY25), hurt by lower financial services revenue and higher lending-related costs.

It reported a consolidated net loss of INR 55.28 Cr in Q3 FY25 against a profit of INR 5.27 Cr in the year-ago quarter. On a quarter-on-quarter (QoQ) basis, net loss zoomed multifold from INR 3.59 Cr.

However, it posted an 18% jump in its operating revenue to INR 269.47 Cr in the December quarter of FY25 from INR 228.93 Cr in the same quarter last year. Sequentially, however, the top line saw a degrowth of 7% from INR 290.64 Cr.