Payment platform Mobikwik refiles DRHP with Sebi to launch Rs 700 crore IPO

One Mobikwik Systems, which operates the fintech platform Mobikwik, has refiled its draft red herring prospectus (DRHP) with capital markets regulator Sebi to launch its initial public offering (IPO). The company is looking to raise Rs 700 crore through its initial stake sale.

According to the draft papers, the issue will entirely be a sale of fresh equity shares with a face value of Rs 2 each with no offer-for-sale (OFS) components. However, the company, in consultation with lead managers to the issue, may consider a pre-IPO placement of Rs 140 crore on a preferential basis, which may reduce the size of issue.

The net proceeds from the issue shall be utilized towards funding growth in the financial services business; growth in the payment services business; investment in data, ML and AI and product and technology; capital expenditure for the payment devices business; and general corporate purposes.

Mobikwik was established by Bipin Preet Singh and Upasana Taku, with their prior experience in developing technology and financial products. The company's primary goal is to utilize technology to enhance financial inclusion for underserved populations in India. It caters to businesses and merchants with extensive payments and financial services.

MobiKwik, the company's flagship application, provides consumers access to various payment options and financial products in digital credit, investments, and insurance. It operates a B2B payment gateway for e-commerce businesses and has received RBI approval for its payment aggregator (PA) business through its subsidiary Zaakpay.

Mobikwik had 146.94 million registered users and enabled 3.81 million merchants to conduct online and offline payments as of September 30, 2023. Its payment GMV has grown annually by 32.33 per cent.

Mobikwik reported a revenue from operations at Rs 381.09 crore and profit after tax stood at Rs 9.48 crore for the six months ended September 30, 2023. For the financial year 2022-23, the company reported a revenue at Rs 539.47 crore with a net profit loss of 83.81 crore.

The company has reserved 75 per cent of the net offer for the qualified institutional bidders, while non-institutional investors have 15 per cent of shares allocated towards them. Remaining 10 per cent of the equity shares shall be allocated for the retail investors of the issue.

SBI Capital Markets and DAM Capital Advisors are the book-running lead managers for the IPO, and Link Intime India is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.

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