One percent. That seems like nothing, but it’s all that separates you from success. But what is success? Some may think it is the amount of money you make in a year but there are other opinions. Many business analysts argue against the traditional idea of success and say that financial wealth should not be the only metric used to measure how your company is doing. This article explores how marketers at MobiKwik are setting their sights beyond just reaching a quota for unlisted shares.
What are Unlisted Shares? How is it important for MobiKwik?
Unlisted shares are the type of shares that are listed on the company itself but not on any other stock exchange. These shares are priced far lower than the other symbolized shares and their main purpose is to reward early investors with limited numbers of shares. These are usually reserved for founders, employees, or significant stakeholders that have stakes in the company.
This then sharpened the focus on the Unlisted Shares in MobiKwik. Not only did these Unlisted Shares merely absorb nearly 75% of the company’s revenues, but they accounted for the bulk of its user growth too. With no history, MobiKwik gained a huge amount of attention from investors and institutional investing firms alike all across the world.
As MobiKwik has grown in recent years it’s become difficult for them to reliably raise ad revenue so they’ve decided to turn unlisted shares into an innovative method of revenue generation.
MobiKwik gained back 9% of its share in the last quarter. The company has not made any changes to its features or policies, but they have risen in popularity after MobiKwik’s founder Bipin Preet Singh, called them to the lack of financial funding safety for entrepreneurs in India.
The Unlisted Shares plays an important role in MobiKwik. The company has seen its valuation rise by over 40% since it went live with the product three months ago. It counts prestigious firms like Shriram, KKR, and OLX among its earliest buyers. MobiKwik is a digital payment and wallet application. To boost its users, the app series has recently launched Unlisted Shares – a mode of investment whereby people get to invest in MobiKwik shares without having to go through the tedious process of trading on exchanges. In one day, MobiKwik clocks up shares worth Rs 10 lakhs which might be more than the revenue it generates from its daily transactions. Selling these shares at Rs 3 per unit fetches around Rs 60,000, but the downside is that investors will also have to wait a couple of years before they can liquidate the stock for a profit.
Reviewing the monetization plan:-
MobiKwik touts its mobile wallet as a saving app that allows users to make payments at physical stores. When the mobile wallet took off, the company was credited with taking Indian online retail to another level. MobiKwik’s chat function allows customers to speak directly with merchants via audio ads and responsive answers. Recently Mobikwik announced a new monetization plan that has a slight change in the number of listing shares.
This is a positive sign for companies who invested in this technology provider since it means that there is a chance for them to return on their investments. The monetization strategy from the outset was that the company would invest for a long-term time horizon and continuously strengthen its position as a dominant player in mobile payments. In many cases, companies focus entire efforts on highlighting their newest feature to entice newer customers to use their services.
However, it has been realized that the success of a business largely depends on monetizing customers faster and better than other competitors. Thus, MobiKwik decided to consider a few options. The idea of a subscription is against the very grain of an open-source app like
MobiKwik, which is not meant to extract cash from its users. But it seems they still think their monetization strategy can bring in profits and make up for their no-fee business model. An early success for this was seen when the price of Unlisted shares shot up 9% in a week.
Reviewing the MobiKwik customer retention strategy
To retain customers MobiKwik implements many different strategies. One of them is their Unlisted Shares and the share distribution of customer and product data created through this program. By enabling Unlisted Shares, MobiKwik had more than 8 million Indian mobile wallet users open a new account in 2017. MobiKwik’s customer retention strategy is an integral part of its marketing activity. MobiKwik attributed the success to this strategy that began in 2015, which brought new features and enhanced support quality to their customers. The key element of the strategy is being simple, with announcements being sent periodically about product updates for various categories on their app.
Why are MobiKwik’s Unlisted Shares suddenly shot up?
One reason for this was the infamous ‘Bot battle’. MobiKwik claims to have won this battle with SBI’s bot, by having their server confirmed to be faster which beat out ‘SBI’. Another reason for this sudden surge in Unlisted IPO was due to the fact that it would reduce the advertising spend. The one issue that might have caused a drop in the price of MobiKwik is the low number of big valued stocks listed on its exchange. The government had recently issued a warning that Unlisted Shares can be risky and investors should be cautious about carrying out transactions with Unlisted Shares. In all, I agree with the central point of this blog–that MobiKwik likely looks to have had some good luck as far as its rise goes, but I’d still consider many small retail traders as being smaller and more risky prospects for the company. Upon seeing more and more people mentioning MobiKwik as a stock to watch, the company had obviously recognized the potential that exists within its unlisted shares.
MobiKwik has always been a great option to invest in as an app with low commission and low price on wallets. Because of these features as well as the company’s excellent operational status worldwide, it is not surprising even if their shares increased by more than nine percent earlier this year.