South African firm Net1 Applied Technologies has officially exited Indian fintech company MobiKwik by selling its entire 8% stake. The exit was executed through a block deal on the National Stock Exchange (NSE), involving 62.15 lakh shares at a price of Rs 230.16 each.
The total deal value comes to approximately Rs 143 crore. This marks the end of Net1’s eight-year relationship with MobiKwik, which began with a strategic investment aimed at expanding digital financial inclusion in India.
Investment Ends in Loss
Net1 had originally invested $40 million (around Rs 270 crore in 2016) in MobiKwik. The partnership was meant to introduce virtual card technologies and help grow financial access through MobiKwik’s platform.
However, the sale price today reflects a notable loss for Net1. Despite an early vision for growth, the South African investor exits with nearly Rs 127 crore less than its original investment.
Stock Performance Varies
MobiKwik made its stock market debut in December 2024 at Rs 444 per share, a strong 59% increase over its issue price. The stock even touched a post-listing high of Rs 698, showing investor enthusiasm.
Since then, however, MobiKwik’s stock has faced volatility and now trades around Rs 261, only slightly above the exit price for Net1’s stake, yet far below its early highs.
Financials Show Growth
In terms of performance, MobiKwik reported revenue of Rs 268 crore in Q4 FY25, which was largely flat compared to the previous quarter. Still, the company saw a healthy annual revenue growth of 34%, reaching Rs 1,192 crore for FY25.
Despite top-line growth, MobiKwik continues to face profitability challenges. The fintech posted a net loss of Rs 56 crore in the fourth quarter of FY25, keeping it in the red even as its user base and services expand.
Exit Marks New Chapter
Net1’s exit brings closure to a long-standing investment, and also signals changing dynamics in the Indian fintech sector, where global backers are reshuffling their portfolios. For MobiKwik, the focus now shifts to revenue growth, stability, and eventually, sustained profitability.
