Gurugram-based fintech startup MobiKwik is set to raise Rs 700 crore through an initial public offering (IPO) after re-filing its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). This fresh issue of equity shares, without any offer-for-sale component, will be conducted through the book-building process, as stated by MobiKwik in a recent statement. The IPO size has been reduced from its previous filing of Rs 1,900 crore in 2021. Additionally, the company mentioned the possibility of a further issue of specified securities, including private placement, preferential allotment, rights issue, or any other method, amounting to Rs 140 crore as a “Pre-IPO placement.” If this placement occurs, the fresh issue size will be adjusted accordingly.
MobiKwik plans to allocate the proceeds from the fresh issue as follows: Rs 250 crore for growth in the financial services business, Rs 135 crore for the payment services business, Rs 135 crore for investment in data, ML, and AI, product, and technology, Rs 70.28 crore for capital expenditure for the payment devices business, and for general corporate purposes.
Established in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik offers a range of payment and financial services for businesses and merchants and operates a B2B payment gateway for ecommerce businesses. The company has secured approval from the Reserve Bank of India for its Payment Aggregator business. As of September 30, 2023, MobiKwik boasts 146.94 million registered users.
In its financial report for FY23, MobiKwik disclosed a revenue of Rs 539.47 crore, a slight increase from Rs 526.56 crore in FY22. However, the company reported a reduced loss of Rs 83.81 crore for FY23, down by 35% from Rs 128.16 crore in FY22. For the six months ending September 30, 2023, MobiKwik’s revenue from operations stood at Rs 381.09 crore, with a profit after tax of Rs 9.48 crore.
MobiKwik’s move to raise funds through an IPO reflects its commitment to strengthening its position in the fintech sector and expanding its services to meet the evolving needs of its users and partners.
