IPO-bound MobiKwik is raising a term loan of INR 10 Cr from non-banking financial company (NBFC) Equentia Financial Service Private Limited (CredAble) for its working capital needs. The board of MobiKwik passed a resolution on January 16 to avail the loan.
The development comes days after the Delhi NCR-based startup filed its draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (SEBI).
The Peak XV Partners-backed startup is looking to raise up to INR 700 Cr via fresh issues of shares. The initial public offering (IPO) will not have any offer for sale (OFS) component.
It is pertinent to note that MobiKwik has slashed its IPO size by almost 63% from INR 1,900 Cr which it was looking to raise when it first filed its DRHP in 2021. At that time, the startup was looking to raise INR 1,500 Cr from fresh issue of shares and INR 400 Cr via OFS. However, MobiKwik shelved its IPO plans due to volatile market conditions.
Amid this, the startup managed to improve its financial performance. MobiKwik turned profitable in the first six months of FY24. It reported a net profit of INR 9.5 Cr in the first half of the ongoing fiscal year. Operating revenue stood at INR 381 Cr, almost 70% of the revenue it earned in the previous fiscal year.
For comparison, MobiKwik’s net loss declined 35% to INR 83.8 Cr in FY23 from INR 128.1 Cr in the previous fiscal year. However, operating revenue remained almost flat at INR 539.4 Cr in FY23.
Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik is a digital banking platform that offers a suite of financial products for both consumers and merchants. It offers online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine, Merchant Cash Advance, among others, to businesses and merchants.
The startup joined the unicorn club in October 2021. To date, it has raised around $177 Mn across multiple rounds and counts the likes of Peak XV Partners and Abu Dhabi Investments Authority among its backers.
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