Delhi NCR-based fintech unicorn MobiKwik, in its second attempt to go public, has once again filed its draft red herring prospectus (DRHP) with the markets regulator SEBI. The startup is raising INR 700 Cr through fresh issues of shares without any offer-for-sale component.
However, the startup intends to raise a pre-IPO placement aggregating up to INR 140 Cr in consultation with book running lead managers (BRLMS). If the pre-IPO placement is completed, then the fresh issue size will be reduced accordingly.
The development comes almost two days after Inc42 exclusively wrote that the startup will be refiling its draft papers and is looking to raise up to INR 880 Cr via fresh with no OFS component in the IPO offer. Existing shareholders not selling their shares during an IPO indicates the confidence that the shareholders have with promoters.
Besides, the startup in the first six months of FY24 has managed to turn profitable. In the first two quarters of FY24, it has reported a net profit of INR 9.5 Cr, while its revenue from operations was INR 381 Cr, almost 70% of the revenue in the previous fiscal year.
Being a fintech startup, MobiKwik intends to utilise the IPO net proceeds for funding its financial service business, payment services and investment in artificial intelligence (AI) and machine learning (ML).
If we talk about the startup’s shareholding structure, founders Bipin Preet Singh and Upasana Taku combined own 32.25% stakes on a fully diluted basis. Bajaj Finance Limited is the second largest shareholder with 13.44%, followed by Peak XV Partners (formerly known as Sequoia Capital) with 13.06% stake in the company.
It is pertinent to note that the startup’s current IPO offering is almost 63% lower than INR 1,900 Cr that it had looked to raise through the public bourses in 2021.
Back then, the DRHP documents revealed that the IPO offer consisted of a fresh issue of up to INR 1,500 Cr and an OFS component of up to INR 400 Cr. Existing investors American Express, Bajaj Finance, Peak XV Partners, along with founders (promoters) Bipin Preet Singh and Upasana Taku, were to participate in the OFS.
However, the startup despite getting SEBI’s approval shelved its IPO plans like many other Indian startups due to market conditions. However, of late, Indian startups have witnessed several companies aiming to hit the public market. From co-working space Awfis, to Bhavish Aggarwal’s Ola Electric all have filed their IPO papers for SEBI’s approval.
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