IPO-bound MobiKwik plans to boost brand visibility and optimize marketing strategies
The company's business promotion increased by 30.22 percent in FY 22 on account of an increase in advertising and a rise in user incentives
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Fintech One Mobikwik Systems Limited, which will be launching its IPO on December 11, said that it will continue to take measures to make the brand more visible on online and offline channels and to increase brand awareness.
For marketing and brand awareness, MobiKwik focuses majorly on online activities, including social media, influencer campaigns, and offline touchpoints, such as QR codes and merchant posters. Besides, it also focuses on promoting the MobiKwik brand through partnerships or alliances with various consumer-packaged brands, e-commerce partners, and strategic business-to-business partners.
MobiKwik's business promotion expenses amounted to Rs 80.3 crore, Rs 104.5 crore, Rs 84.5 crore, and Rs 46 crore in fiscal years 2021, 2022, 2023 and the six months ended September 30, 2023.
The company's business promotion increased by 30.22 percent in FY 22 on account of an increase in advertising and a rise in user incentives. However, the company's ad expenses were reduced by 47.71 percent from Rs 8.4 crore in fiscal 2022 to Rs 4.4 crore in FY 23 due to optimizing its marketing strategies.
According to the company, it invests in marketing efforts such as "search engine marketing and other forms of online marketing, such as social media posts and influencer campaigns, and offline touchpoints, such as QR code and merchant posters" to attract large numbers of consumers and merchants".
Among the leading fintech companies in India, Paytm spent the highest on marketing and promotional activities in FY 23 at Rs 1,076 crore, followed by PhonePe at Rs 353.23 crore, and Fi Money at Rs 132.78 crore. MobiKwik's ad spending stood at Rs 84.56 crore in the same period.
MobiKwik said that for every Rs 1 spent on marketing, it realized a revenue of Rs 6.64 as of FY 23.
"We believe our strong brand recognition provides us with significant organic consumer traffic and a cost-efficient marketing channel. Historically, we have grown through organic and consumer-driven means and further accelerated this organic growth with promotions, discounts, and our loyalty rewards program SuperCash. In fiscal 2023 and the six months ended September 30, 2023, our marketing spend accounted for 0.34 percent and 0.27 percent respectively, of our Platform Spend Gross Merchandise Value (GMV)," the fintech added.
MobiKwik aims to raise Rs 572 crore from the public markets. The Gurugram-based firm set a price band of Rs 265 to Rs 279 per share.
