MobiKwik Refiles IPO Papers, Aims to Raise Rs 700 Crore
By Rediff Money Desk, NEWDELHI Jan 05, 2024 18:42
Fintech firm MobiKwik refiles IPO papers with Sebi, aiming to raise Rs 700 crore, a significantly reduced amount compared to its previous attempt. The funds will be used for growth in financial and payment services, data and AI investments, and more.
New Delhi, Jan 5 (PTI) Little over two years after scrapping its IPO plan, unicorn fintech firm One MobiKwik Systems Ltd has again filed papers for an initial share sale to raise up to Rs 700 crore.
However, the amount to be raised through the Initial Public Offering (IPO) is way lower than Rs 1,900 crore it had proposed when it filed the draft papers in July 2021.
One MobiKwik Systems Ltd, a firm backed by Peak XV Partners, is now looking to mop up Rs 700 crore through a fresh issue of shares, according to the Draft Red Herring Prospectus (DRHP) filed on Thursday.
The company may consider a pre-IPO placement of its securities worth up to Rs 140 crore. If such a placement is undertaken, the size of the fresh issue will be reduced.
Going by the draft papers, the proceeds from the fresh issue to the tune of Rs 250 crore will be used for funding growth in the financial services business and Rs 135 crore for the payment services business.
Further, Rs 135 crore for investment in data, machine learning and artificial intelligence, and product and technology, Rs 70.28 crore for capital expenditure for the payment devices business, and general corporate purposes.
The offer is being made through the book-building process, wherein not less than 75 per cent of the issue will be available for allocation to qualified institutional buyers.
Not more than 15 per cent of the offer will be available for allocation to non-institutional investors, and not more than 10 per cent of the issue will be available to retail individual bidders, as per the DRHP.
The company had withdrawn the earlier IPO draft papers in November 2021 citing weak market conditions.
MobiKwik, the company's flagship application, provides consumers access to various payment options and financial products in digital credit, investments, and insurance.
Co-founded by Bipin Preet Singh and Upasana Taku in 2009, the firm's primary goal is to utilise technology to enhance financial inclusion for the underserved population in India.
The firm caters to businesses and merchants with extensive payments and financial services such as online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC machine, and merchant cash advance.
Through its subsidiary Zaakpay, it operates as a B2B payment gateway for e-commerce businesses and has received the Reserve Bank of India's nod to operate as a payments aggregator.
The fintech company is also backed by marquee investors such as Bajaj Finance, wealth fund Abu Dhabi Investment Authority and American Express.
As of September 30, 2023, MobiKwik has amassed 146.94 million registered users and enabled 3.81 million merchants to conduct online and offline payments.
One MobiKwik Systems' revenue from operations stood at Rs 381.09 crore and profit after tax was Rs 9.48 crore for the six months ended September 30, 2023.
SBI Capital Markets Ltd and DAM Capital Advisors Ltd are the book-running lead managers, and Link Intime India Pvt Ltd is the registrar for the IPO.
The company's equity shares are proposed to be listed on the BSE and NSE.
However, the amount to be raised through the Initial Public Offering (IPO) is way lower than Rs 1,900 crore it had proposed when it filed the draft papers in July 2021.
One MobiKwik Systems Ltd, a firm backed by Peak XV Partners, is now looking to mop up Rs 700 crore through a fresh issue of shares, according to the Draft Red Herring Prospectus (DRHP) filed on Thursday.
The company may consider a pre-IPO placement of its securities worth up to Rs 140 crore. If such a placement is undertaken, the size of the fresh issue will be reduced.
Going by the draft papers, the proceeds from the fresh issue to the tune of Rs 250 crore will be used for funding growth in the financial services business and Rs 135 crore for the payment services business.
Further, Rs 135 crore for investment in data, machine learning and artificial intelligence, and product and technology, Rs 70.28 crore for capital expenditure for the payment devices business, and general corporate purposes.
The offer is being made through the book-building process, wherein not less than 75 per cent of the issue will be available for allocation to qualified institutional buyers.
Not more than 15 per cent of the offer will be available for allocation to non-institutional investors, and not more than 10 per cent of the issue will be available to retail individual bidders, as per the DRHP.
The company had withdrawn the earlier IPO draft papers in November 2021 citing weak market conditions.
MobiKwik, the company's flagship application, provides consumers access to various payment options and financial products in digital credit, investments, and insurance.
Co-founded by Bipin Preet Singh and Upasana Taku in 2009, the firm's primary goal is to utilise technology to enhance financial inclusion for the underserved population in India.
The firm caters to businesses and merchants with extensive payments and financial services such as online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC machine, and merchant cash advance.
Through its subsidiary Zaakpay, it operates as a B2B payment gateway for e-commerce businesses and has received the Reserve Bank of India's nod to operate as a payments aggregator.
The fintech company is also backed by marquee investors such as Bajaj Finance, wealth fund Abu Dhabi Investment Authority and American Express.
As of September 30, 2023, MobiKwik has amassed 146.94 million registered users and enabled 3.81 million merchants to conduct online and offline payments.
One MobiKwik Systems' revenue from operations stood at Rs 381.09 crore and profit after tax was Rs 9.48 crore for the six months ended September 30, 2023.
SBI Capital Markets Ltd and DAM Capital Advisors Ltd are the book-running lead managers, and Link Intime India Pvt Ltd is the registrar for the IPO.
The company's equity shares are proposed to be listed on the BSE and NSE.
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