MobiKwik has deepened its investment in Blostem Fintech Private Limited, acquiring an additional 3.39% stake for INR 1.49 crore. This follows the second tranche of a share subscription and shareholders’ agreement dated 13 March 2024. With this transaction, MobiKwik’s total holding in Blostem rises to 6.79% on a fully diluted basis.
Strategic Investment in Blostem Fintech
MobiKwik has approved an investment of INR 3 crore in Blostem in two phases. During the first phase in March 2024, the fintech major invested INR 1.5 crore for a 3.40% stake. The second phase was finalized on 21 February 2025. In this phase, the company acquired an additional 3.39% stake. Now MobiKwik holds a 6.79% stake in Blostem.
Blostem Fintech: B2B Banking Infrastructure for Fixed Deposits
Blostem was founded in 2021 by Ravi Jain and Sandeep Garg, the company is a B2B banking infrastructure provider that specialises in providing Fixed Deposit aggregation. Blostem is a connecting link between financial institutions, banks and NBFC by API-based integrations. The company offers fixed deposit services across various digital platforms. In FY24, Blostem reported revenue of INR 30.76 lakh.
MobiKwik’s Growth Trajectory and Financial Performance
MobiKwik is a ready-to-go digital wallet and payment platform, that continues to expand into the fintech industry. The company introduced FD products in collaboration with Suryoday Small Finance Bank, Bajaj Finance and many more in October 2024.
However, MobiKwik reported a consolidated net loss of INR 55.28 crore in the third quarter of FY25, and a net profit of INR 5.27 crore in Q3 FY24. Revenue from operations also climbed 17.7% year-on-year to INR 269.47 crore. On a QoQ basis, revenue declined 7% from INR 290.64 crore in Q2 FY25.
Strategic Outlook
MobiKwik’s investment in Blostem is a minor step in its long-run strategy. The company is aiming to strengthen its position in the fintech ecosystem. The company is also exploring opportunities to expand in the insurance distribution sector and secured regulatory approval from IRDAI.
As of the latest data available Mobikwik has 17.2 crore registered users and 50 lakh merchants. The company’s growing stake in Blostem underscores its commitment to scaling financial infrastructure.
Market Reaction
Following the announcement, MobiKwik’s stock declined 3.6%, closing at INR 311.20 on the BSE. Investor concerns over operational costs and profitability appear to be influencing sentiment. However, this should not be linked with investment in Blostem. Ongoing market correction is also playing a crucial role in the decline. More than 40 IPOs listed in the last 365 days are trading below their allotment price.
Mobikwik IPO made its stock market debut on 18 December 2024. INR 572 crore issue listed with a premium of 89.25% on the listing day. Currently, the stock is trading at over 11% premium of its issue price of INR 279 per share.
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