Gurugram-based fintech company, One MobiKwik Systems Ltd, has taken a step towards going public by refiling its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). This move comes as MobiKwik’s second attempt at launching its Initial Public Offering (IPO), seeking to raise Rs 700 crore, which is a strategic reduction from its previous target of Rs 1,900 crore in 2021.
The proposed IPO, with a face value of Rs 2 per share, is composed entirely of fresh equity shares without an offer-for-sale component. This IPO structure aims at funding various strategic business initiatives. According to the DRHP, MobiKwik plans to allocate up to Rs 250 crore towards enhancing its financial services business, Rs 135 crore each for growing its payment services and for investments in data, machine learning (ML), artificial intelligence (AI), and technology. Additionally, Rs 70.28 crore is earmarked for capital expenditure in the payment devices sector and other general corporate purposes.
The IPO will be managed by SBI Capital Markets Limited and DAM Capital Advisors Limited, with Link Intime India Private Limited serving as the registrar. The company also contemplates a pre-IPO placement of Rs 140 crore, which, if executed, would proportionally reduce the size of the fresh issue.
Founded in 2009 by Bipin Singh and Upasana Taku, MobiKwik has emerged as one of India’s leading mobile wallets and Buy Now, Pay Later service providers. The company’s decision to refile the DRHP underscores its resilience and adaptability in the dynamic fintech sector, especially after deferring its IPO plans due to adverse market conditions and a downturn in tech company shares, as observed with its rival Paytm in 2021.
For the fiscal year 2022–23, the company’s revenue from operations reportedly rose to Rs 539.47 crore, up from Rs 526.56 crore in the previous fiscal year. Moreover, the company’s loss for the year decreased by 34.60% to Rs 83.81 crore in fiscal 2023 from Rs 128.16 crore in fiscal 2022. As of September 30, 2023, MobiKwik boasts a substantial user base of 146.94 million registered users and 3.81 million merchant accounts.
MobiKwik’s focus on funding growth and technological advancements positions the company to capitalize on the expanding digital finance landscape in India. With this move, MobiKwik joins the cohort of Indian startups like Ola Electric and FirstCry, gearing up to enter the public market this year.