Fintech major MobiKwik filed draft papers for its initial public offering (IPO) with the stock markets regulator, proposing to raise ₹700 crore through fresh issue of shares.

This is the second time One MobiKwik Systems, parent company of the digital payment service provider, has filed a draft red herring prospectus (DRHP) for IPO with market regulator SEBI. MobiKwik had abandoned its initial listing plans in 2021, citing weak market conditions.

The company may also consider a pre-IPO placement of up to ₹140 crore as a part of the offer, MobiKwik said in the draft papers. If it completes the pre-IPO private placement of shares, the size of the fresh issue will be reduced proportionally, it added.

The Gurgaon firm plans to use the net proceeds for growing its business. MobiKwik is expected to use ₹250 crore for growth of its financial services business and ₹135 crore to grow its payments services business lines, with the rest being invested towards building data, machine learning and artificial intelligence-related products for users.

H1 FY24 performance

For the six-month period ended September 30, 2023, MobiKwik recorded a total revenue from operations of ₹381 crore, with total profits standing at ₹9.5 crore.

In October 2023, MobiKwik got an in-principle approval to run the payment aggregator business. In FY23, the company had recorded total revenue from operations of ₹540 crore, up marginally by 2.5 per cent over the previous fiscal. It managed to reduce its losses by 34 per cent to ₹83.8 crore in FY23.

Earlier this week, the board of MobiKwik passed a resolution to raise ₹880 crore via a fresh issue of shares through a public listing.