MobiKwik Acquires Stake in Blostem Fintech

MobiKwik, the parent entity of the fintech company, has announced the acquisition of 3.39% of the share capital of Blostem Fintech, calculated on a fully diluted basis. The investment amounts to Rs 1.49 crore, marking the second tranche of a share subscription in accordance with a shareholders’ agreement established on March 13, 2024.

Investment Details and Background

Previously, MobiKwik has committed to investing Rs 3 crore in Blostem’s equity shares across two tranches. The initial tranche of Rs 1.5 crore was disbursed in March 2024, securing a 3.40% equity stake in Blostem’s fully diluted paid-up capital.

About Blostem Fintech

Founded in 2021 by Ravi Jain and Sandeep Garg, Blostem operates as a B2B banking infrastructure platform focusing on Fixed Deposit (FD) aggregation as its primary service. The firm has forged strategic alliances with several banks and non-banking financial companies (NBFCs), aimed at integrating their financial offerings through advanced API solutions.

Technological Innovations in Finance

Blostem’s innovative plug-and-play technology stack empowers various B2C platforms, allowing them to distribute banking products effectively. The platform utilizes state-of-the-art infrastructure to enable financial institutions as well as super apps to present scalable and seamless financial solutions to their end consumers.

Financial Performance

Blostem reported revenues amounting to Rs 30.76 lakh for the fiscal year ending March 2024, and the company has operations spanning across India.

MobiKwik, on the other hand, has seen its revenue from operations rise to Rs 269 crore in Q3 FY25, up from Rs 229 crore in Q3 FY24. Despite this growth in revenue, the earnings fell by 7.6% in Q3 FY25 compared to Rs 291 crore in Q2 FY25.

Growth Metrics

MobiKwik’s registered user base has expanded to 172 million, accompanied by 5 million merchants. Additionally, the company’s payment Gross Merchandise Value (GMV) has surged year-on-year, reaching Rs 29,400 crore.