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Business News/ Markets / Ipo/  Mobikwik files for 700 cr IPO
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Mobikwik files for ₹700 cr IPO

Mobikwik is also aiming to raise ₹140 crore in a pre-IPO placement, which if successful will reduce the issue size appropriately.

Mobikwik files DRHP for IPO with SEBI Photo: iStockPremium
Mobikwik files DRHP for IPO with SEBI Photo: iStock

Payments business One MobiKwik Systems Ltd has filed its draft papers with the Securities Exchange Board of India (Sebi) to raise 700 crore in an initial public offering (IPO).

Mobikwik is also aiming to raise 140 crore in a pre-IPO placement, which if successful will reduce the issue size appropriately. SBI Caps and DAM Capital are managing the issue.

This is the fintech company’s second attempt at the bourses with a reduced offer size.

This is also less than what the company initially planned for. Earlier this week, the company obtained a board resolution to raise 880 crore worth of fresh issue of equity shares through IPO.

The company had first attempted to raise 1,900 crore in November 2021, but decided to withdraw because of poor investor sentiment. Unlike the first time, the company has dropped its offer for sale (OFS) component with no secondary sale of shares in this issue.

The company plans to use the primary proceeds to fund its business. The objects of the issue include 250 crore towards the funding of financial services business, with another 135 crore earmarked towards the payments business. It plans to use 135 crore towards “Investment in data, ML and AI and product and technology" and will use the remaining 70 crore for capital expenditure and other expenses.

“Our management will also have the discretion over the specific activities that will be funded towards certain Objects. For instance, we intend to utilize 100 crore from the Net Proceeds towards acquisition of new consumers and merchants on our platform," the draft filing said.

Mobikwik said that it reported 243.9 crore in revenue for the first six months of FY24, of which 64% was revenue from its financial services operations. The company reported 285 crore in revenue in FY23, up from 97.6 crore in FY22.

“In particular, we have experienced rapid growth in our financial services business, with our digital credit GMV (gross merchandise value) increasing at a rate of 404.16% from 2,999.43 million in fiscal 2021 to 15,122.16 million in fiscal 2022 and at a rate of 238.24% from 15,122.16 million in fiscal 2022 to 51,149.83 million in fiscal 2023. Our digital credit GMV was 41,163.40 million in the six months ended September 30, 2023," the draft filings said.

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ABOUT THE AUTHOR
Ranjani Raghavan
Ranjani heads the startup and new economy team at Mint. She covers the investment and the deals ecosystem, which takes her into the secretive world of high finance — mostly private equity and venture capital firms and the people running them. She also writes about the Indian corporate world which includes old fashioned business executives and their emerging challengers from the tech ecosystem.
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Published: 05 Jan 2024, 12:11 PM IST
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