Net1 exits MobiKwik after 8-year investment, books a loss
27 Jun 2025, 11:21 AMThe firm had initially invested $40 million (approximately Rs 270 crore back in 2016) in MobiKwik, which was then seen as the closest rival to Paytm.
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South Africa-based Net1 Applied Technologies has exited its investment in fintech firm MobiKwik after nearly eight years, selling its entire 8% stake through a block deal on Thursday.
Net1 offloaded 62.15 lakh shares at Rs 230.16 a piece, totalling around Rs 143 crore, as per data from the National Stock Exchange.
The firm had initially invested $40 million (approximately Rs 270 crore back in 2016) in MobiKwik, which was then seen as the closest rival to Paytm.
Despite the fintech going public, Net1's exit has resulted in a financial setback, as the return fell significantly short of its original investment.
MobiKwik, which debuted on the bourses in December 2024 at Rs 444 per share -- a 59% jump from its issue price -- witnessed strong post-listing momentum, touching a high of Rs 698. However, the stock has since cooled off, and now trades around Rs 261.
The payments company reported Rs 1,170 crore in operating revenue for full fiscal year FY25, an increase from Rs 875 crore in FY24. However for the quarter ended March 31, 2025, the revenue remained flat at Rs 268 crore, against Rs 269 crore reported during Q4 FY24.
The Gurugram-based company swung to losses in FY25. It booked Rs 121.5 crore in losses during FY25, compared to Rs 14 crore in net profits posted during FY24. For Q4 FY25, MobiKwik reported Rs 56 crore in losses, compared to a loss of Rs 55 crore in Q3 FY25.
Net1's exit is part of a broader trend of long-term investors reassessing their positions in India's new-age tech companies amidst fluctuating valuations and evolving market dynamics.
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