ONE MOBIKWIK SYSTEMS LIMITED

INDUSTRY OVERVIEW

MACRO ECONOMY

Approximately 55% of the Indian population is between 20 and 59, which means a large part of
the population is part of the workforce driving digital growth in country.

Since 2015, India’s Average real GDP growth is approximately 7%. However, for calendar year
2020, India’s economy contracted by 7.3% because of the slowdown in economic activities in the
first quarter of Fiscal 2021 (i.e., April’20-June’20). For Calendar year 2021, India’s economic
growth is approximately 9.5%.
 • India’s GDP (current prices) is expected to be US$ 4.2 trillion by 2025. As per Economics
and Business Research (CEBR), India is expected to become the third largest economy in
the world by 2030.
• GDP growth in India is expected to be driven by rising private final consumption
expenditure (“PFCE”) in the next five years. The PFCE has been growing steadily, from
US$ 1.2 trillion in 2015 to US$ 1.6 trillion in 2019, which is further expected to increase
to approximately US$ 2-2.5 trillion by 2025.
*PFCE: The Private final consumption expenditure (PFCE) is defined as the expenditure incurred by
the resident households and non-profit institutions serving households (NPISH) on final
consumption of goods and services, whether made within or outside the economic territory.
This is likely to lead to strong credit card growth due to consumer’s growing aspirations
for consumption.

INTERNET TRENDS IN INDIA (Current population: 1.38 billion)

500-550 million Indians are smartphones user, and 650-700 million Indians have internet
access, it is projected smartphone users will increase to 800-850 million and that the internet
users in India will increase to nearly 1 billion.

Reasons for India’s rising digital growth:

1. Low-cost smartphone, local and global brands

2. Cheaper 4G data plans

3. Government initiatives under the digital India campaign

India’s consumer internet market (includes online retail of products and services) is expected to
cross a triple digit GTV (Gross transaction value) for the first time, i.e., US$ 125 billion. The
GTV is expected to grow US$300 billion plus by Fiscal year 2026.

DIGITAL PAYMENT LANDSCAPE IN INDIA

*Online Transactors: Users transacting for banking, IRCTC, mobile recharges, P2P, online shopping for
products and services.

*Online Shoppers: shops for products online (electronics, fashion, grocery and others).

Rapid growth in the mobile payment user base of India is enabled by the growth of payment
instruments such as mobile wallets and unified payments interface (“UPI”).
India ranks 2nd largest mobile payment markets in the world, behind China.

*Figures in millions

Key indictors of rising mobile payments market in India:

1) P2M (Person to Merchant) transactions for ecommerce, grocery, food delivery etc.

2) Bill Payments – total value of transactions executed on BBPS (Bharat Bill Payment System) in
Fiscal 2021 was US$ 5.9 billion.

3) Mobile Wallets: Latest regulations (in effect) –

1. Limit of the outstanding balance in mobile wallets has also been doubled to ₹ 2 lakhs by
RBI
2. Customers will be able to use mobile wallets at ATMs to withdraw cash and at point-of-
sale terminals (card-swiping machines).

4) Convenience and Safety

5) credit-based Buy Now Pay Later (BNPL) model

Buy Now Pay Later Scheme

India’s online transacting users has rapidly grown at a CAGR (Compound Annual Growth Rate) of
approximately 15% from 180 million in 2018 to 250 million in 2021.

Low Credit card penetration of 3.5 % (as on March’2021) of Indian population above the age of
15 years, which is 30-35 million unique credit card users.

India’s online BNPL market reached US$3-3.5 billion in 2021. Expected to grow to US$45-50
billion by 2026. Scope of increment in coming years as India is gradually shifting to
consumption economy.
In India, BNPL has been growing based on the following two models: deferred payments and
shopping EMI loans.
 MOBIKWIK
Promoters: Bipin Preet Singh, Upasana Rupkrishan Taku, Koshur Family Trust and Narinder Singh
Family Trust

Fintech company, leveraging big data analytics and deep data science (including machine
learning).

Mobile wallet (MobiKwik Wallet) and Buy Now Pay Later (BNPL) player in India.

*GMV (Gross Merchandise Value)- total value of merchandise sold over a given period of time through a
customer-to-customer (C2C) exchange site.

Focussed on addressing the unmet credit needs of online transactors through mobile wallet and
BNPL service.

MobiKwik's valuation is estimated at over $736 million (as of June 2021 funding round)

Business Segments
1) Begun operations in 2009 with MobiKwik wallet. As of March 31,2021, company has registered
101.37 million registered users and more than 3.44 million ecommerce, physical retail and biller
partners.

1. 101.37 million registered user (as of March 31, 2021) use the wallet.
2. Fund the wallet using (i) savings from their bank account through debit card, net banking
or UPI; (ii) credit through credit card and BNPL products; (iii) other pre-paid
instruments, including gift cards, pre-paid cards and coupons; and (iv) peer-to-peer
transfers, such as, wallet-to-wallet or UPI.
3. Payment option in the checkout and physical retail stores and QR code payment option at
the POS/cashier.
4. Executed agreements with network providers, such as, American Express Limited and
Visa to issue prepaid cards through which users can pay at merchants where MobiKwik
Wallet is not directly integrated. As of March 31, 2021, Issued 1,104,364 MobiKwik Blue
American Express Cards.

Merchant Acquisition

1. As of March 31, 2021, over 3.44 million merchants accepted payments through the MobiKwik
Wallet, including over 3.37 million physical stores and 73,281 online merchants.
2. Provide services to -
2) Introduced payment gateway, Zaakpay, in 2012. Collect payments using debit and credit
cards, mobile wallets, UPI and net banking.

1. Extensive choice of payment modes including credit and debit cards, UPI, net banking,
mobile wallets and BNPL credit
2. Intend to increase share of checkout with existing merchants, acquire merchants in new
categories, cross-sell payment gateway services to MobiKwik Wallet’s online merchant
network, directly integrate with more banks and provide innovative value-added services
such as, same day, instant and customised settlement, payout suite, instant refunds,
split payments, auto-reconciliation and advanced routing control.

3) Affordable small-ticket credit to middle class Indians for daily life payments-In May 2019,
launched MobiKwik Zip, BNPL. As of March 31, 2021, 22.25 million users have been pre-approved
for MobiKwik Zip, and in Fiscal 2021, users repeat rate was 79.19%.

1. Interest free product with 500rs to 30,000rs credit limit. On purchase, 15-day cycle
activates. At the end of the cycle, 5 days are given to clear the dues, failing which a late
fee is charged.
2. Zip EMI: Products worth between 25,000rs to 1,00,000rs. Interest bearing and users
repay through 6/12/18 equal monthly deposits.
3. Enables first time access to credit; increased purchasing power; interest free credit if
repaid on time; ability to build credit history.
4. Partnered with banks and RBI registered NBFC’s to extend BNPL credit to users.
Partners: Idfc First Bank, InCred, Fullerton India Credit Company Limited, DMI and
Faircent.com.
41.58 million users have KYC completed; meaning technically 0 customer acquisition cost.

Technology- MobiScore, our in-house machine learning based credit scoring algorithm. This flow
of credit, payment and user data allows MobiScore to continually learn, increase the number of
pre-approved BNPL users, increase credit limit of existing BNPL users.

Large merchant network, with 2,454 in March 31,2020 to 11,359 as of March 31, 2021.

4) Wealthtech and InsureTech

1. Acquired Clearfunds, an online mutual fund platform in 2018 to offer wealth tech
products. As of March 31, 2021, partnered with 36 asset management companies,
including UTI Mutual Fund, DSP and Aditya Birla Sun Life Mutual Fund.
2. Intend to diversify to products such as Fixed Income and National Pension scheme.
3. Partnered with SafeGold, to trade digital gold.
4. AUM of wealthtech products amounted to ₹ 1,652.50 million, ₹ 2,879.00 million and ₹
3,963.90 million in Fiscals 2019, 2020 and 2021, respectively.
5. Partnered with four insurance companies, including SBI General Insurance, Aegon Life
and Chola MS to offer a wide range of micro insurance (life, health and general)
products. Aim to increase insurance penetration.

Competition

Principally from other mobile wallet companies, financial technology companies, payment service
providers, including commercial banks that issue payment cards or provide QR codes for
payments, and, digital lending companies.
Operational Agreements (How Mobikwik makes money)

Agreements with Merchants

1. Consumer Payments Segment (MobiKwik Wallet)

Entitled to charge a merchant fee to the merchant when a user successfully purchases goods
or services from the merchant and pays through the MobiKwik Wallet.

In addition, we also charge certain merchants an annual maintenance fee.

2. Payment Gateway Segment (Zaakpay)

Merchant uses Zaakpay’s payment gateway services for facilitating payments by users through a
debit or credit card, net banking, UPI or MobiKwik Wallet.

In consideration of the services provided by Zaakpay, the merchants are required to pay a
merchant fee, which varies for debit cards, credit cards, net banking and corporate cards, as
well as further charges, such as annual maintenance charges.

Strengths

1. Strong network

1. Consumer Benefit: digital experience; fast, mobile, secure.

2. Bank Benefit: Generates transactions; enhance credit profile for loan books
3. Merchant Benefit: offer services/products online and offline
4. Partner Benefit: Enables partner to provide more payment services to user

2. Large user base

1. Registered Users have grown at a CAGR of 25.70% from 64.16 million as of March 31,
2019 to 101.37 million as of March 31, 2021.
2. Primarily acquire users through: (i) SEO (search engine optimization) and mobile ASO
(application store optimization) initiatives; (ii) user referrals from a large user base; (iii)
brand recall from checkout and POS placement in our diversified merchant network; and
(iv) high usage of the BBPS platform
3. Enabled us to reduce already low CAC per New Registered User from ₹ 13.39 in Fiscal
2020 to ₹ 11.51 in Fiscal 2021.

3. Strong Brand name

1. Physical retail and online merchant network across India as of March 31, 2021 was over
3.44 million, including over 3.37 million physical stores, 73,281 online merchants and 283
billers.

4. Technology powered approach

Bharat Bill Payment System Guidelines (“BBPS Guidelines”)

Integrated bill payment system which offers bill payment service to customers through a
network of agents, enabling multiple payment modes.

The company has also received in-principle approval from the RBI to set up a Bharat Bill
Payments Operating Unit (BBPOU), thereby enabling users from across all parts of India, urban
and rural, to pay their utility and convenience bills through the MobiKwik wallet.

Consolidated GMV
*Consolidated GMV- aggregate value of transactions (including taxes, fees and services, and gross of all
discounts) through our platform related to our consumer payments segment, BNPL segment, and payment
gateway segment.

ECL=Expected Credit Loss

Offer

Selling Shareholders

Financials
List of Subsidiaries:
Consolidated statement of Assets/liabilities:
P&L statement
Consolidated statement of Cash Flows