In a quiet but telling exit, South Africa-based Net1 Applied Technologies has sold its entire 8% stake in fintech firm MobiKwik, ending a near-decade-long investment journey that began with high hopes for digital financial inclusion in India.
The company sold all 62,15,620 shares via a block deal on the NSE at ₹230.16 apiece, totaling approximately ₹143 crore.
Net1 had originally invested $40 million (around ₹270 crore) into MobiKwik back in 2016. The strategic intent was to bring its virtual card tech and financial access solutions to India’s emerging fintech ecosystem through MobiKwik’s platform. However, after almost nine years, the exit has resulted in a significant loss for the investor.
An Investment That Didn’t Pan Out
MobiKwik’s public listing in December last year was a moment of celebration for many early backers — the stock debuted strongly at ₹444, a 59% premium over its issue price, and touched highs of ₹698. But the excitement proved to be short-lived.
The stock has since experienced sharp swings and now trades around ₹261, marginally above Net1’s exit price.
Business Still in Transition
From an operational lens, MobiKwik’s performance in Q4 FY25 was underwhelming, with flat revenue of ₹268 crore and a loss of ₹56 crore. However, the company showed annual growth, reporting ₹1,192 crore in revenue for FY25, a 33.9% increase YoY.
While MobiKwik continues to evolve as a consumer payments and digital credit platform, Net1’s exit raises important questions about long-term returns in high-growth but volatile fintech ventures.
For the broader ecosystem, it’s a reminder that while India’s fintech sector offers explosive growth, exits remain a high-risk, high-reward game.
By Muskan dengra
