Gurugram-based fintech unicorn One MobiKwik Systems Limited has filed a fresh draft red-herring prospectus (DRHP) with the market regulator Securities and Exchanges Board of India (SEBI) today on January 05, 2024 for its Initial Public Offering (IPO). The company plans to raise Rs 700 crore through a fresh issue of equity shares of a face value of Rs 2 each.
This is the second time the MobiKwik has filed IPO papers with the SEBI. The company had earlier filed draft papers with SEBI in July 2021 aiming to raise about Rs 1,900 crore that included a fresh issue of equity shares as well as an OFS. The company had withdrawn its IPO papers citing poor investor sentiment and market conditions. The offer size in the fresh DRHP filed in January 2024 is reduced to Rs 700 crore with no OFS component. The company had received its board’s approval to raise Rs 880 crore through the public issue earlier this week.
The company also noted that it’s considering to raise up to Rs 140 crore in a pre-IPO placement in consultation with its book running lead managers. The pre-placement will reduce the issue size if successful.
The offer will reserve up to 75% allocation for the qualified institutional buyers, 15% for non-institutional investors and 10% for the retail individual investors. SBI Capital Markets and DAM Capital Advisors are the book-running lead managers whereas Link Intime India is the registrar for the MobiKwik IPO.
MobiKwik plans to utilise the net proceeds from the issue towards expansion and general corporate purposes. Of the total funds raised from the issue, the company plans to use up to Rs 250 crore for growth of its financial services, Rs 135 crore for payment services growth, Rs 135 crore for data, AI/ML and product and tech investment. Up to Rs 70.28 crore will be used for payment device business and the remaining proceeds will go towards meeting general corporate expenses.
No shareholders including founders are selling stakes in the initial public offering. Founders currently own about 32.25 stake in the company and are the largest stakeholders.
Founded in 2009, MobiKwik has over 14 crore registered users and 37 lakh merchant partners.
In the first half of FY24 between April-September 2024, the company posted a profit after tax of Rs 9.48 crore on a revenue of Rs 381 crore. In FY2023, the company’s revenue stood at Rs 539.47 crore over Rs 526.56 crore in FY22. The loss narrowed to Rs 83.81 crore in FY23 as compared to Rs 128.16 crore in FY22.
According to Tracxn data, the company has raised a total of $269 million till date in 22 funding rounds from as many as 123 investors. The list of investors in the fintech unicorn includes including Abu Dhabi Investment Authority, American Express Co., Bajaj Finserv, Hindustan Media Ventures, Peak XV partners and Sequoia Capital etc.
MobiKwik is one of the major start-ups of recent years to head for the IPO in 2024 among the likes of Ola electric, Oyo, FirstCry and more.
