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Digital payments firm MobiKwik has filed its draft red herring prospectus (DRHP) with SEBI for an IPO to raise ₹1,900 crore.
The IPO comprises fresh issue of equity shares of up to ₹1,500 crore and an offer for sale of equity shares by certain shareholders of up to ₹400 crore. The company may consider a pre-IPO placement of equity shares of up to ₹400 crore. The net proceeds of the IPO are proposed to be utilised for growth initiatives, invest in data sciences, products and technology and enhance user and merchant experience.
ICICI Securities, BNP Paribas, Credit Suisse Securities (India , IIFL Securities and Jefferies India are the book running lead managers for the IPO.
Valuation
Founded in 2009 by Bipin Preet Singh and Upasana Rupkrishan Taku, MobiKwik is one of the largest mobile wallets and buy now pay later (BNPL) players in India, based on mobile wallet gross merchandise value (GMV) and BNPL GMV, respectively in fiscal 2021, as per a RedSeer report. Last valued at $700 million when it raised $20 million recently from Abu Dhabi Investment Authority, MobiKwik leverages big data analytics and deep data science to address unmet credit needs of the fast growing digitally paying users by combining the convenience of everyday mobile payments with the benefits of BNPL.
Speaking on the announcement, Bipin Preet Singh, MD & CEO said, “At MobiKwik, our mission is to offer buy now pay later credit to a large number of Indians who, today, don’t have a credit card. A financially inclusive India is the foundation of a strong, self-reliant Bharat.”
MobiKwik’s total income has almost doubled since FY19 and stood at over ₹300 crore for FY21. It has been profitable at segment level across all its business segments for the last two financial years, the company said in a statement. It had over 101.37 million registered users and more than 3.44 million e-commerce, physical retail and biller merchant partners, as of March 31, 2021. MobiKwik Wallet use cases include e-commerce shopping, food delivery, bill payments, petrol pumps, large retail chains and pharmacies. It has raised around $35 million since the beginning of 2021 with the most recent fund raise of $ 20 million.
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