MobiKwik Secures SEBI Approval for ₹700 Crore IPO

Mobikwik gets Sebi nod for Rs 700cr IPO - Times of India

BENGALURU: Mobikwik has received approval from Sebi for its Rs 700-crore IPO. The company has refiled its IPO papers with Sebi on Jan 4. The proceeds from the fresh issue will be allocated to accelerate growth - Rs 250 crore for funding growth in the financial services business, Rs 135 crore each for funding growth in the payment services business and investment in data, ML, AI, product, and tech, Rs 70 crore for capital expenditure.

Payment platform Mobikwik gets Sebi nod for Rs 700 crore IPO

Gurugram-based One Mobikwik Systems has received approval from Sebi to launch its IPO, aiming to raise Rs 700 crore. The company plans to use the funds for growth in financial and payment services, technology investment, and capital expenditure. The IPO will be managed by SBI Capital Markets and DAM Capital Advisors.Gurugram-based One Mobikwik Systems on Monday received a go-ahead from market regulator Securities and Exchange Board of India (Sebi) to launch its initial public offering (IPO). The company had refiled its IPO papers with Sebi on January 4, 2024. One Mobikwik Systems, which operates a platform business with a two-sided payments network consisting of consumers and merchants, plans to raise Rs 700 crore through the IPO. The company, in consultation with the book-running lead managers (BRLMs), may consider a further issue of specified securities including private placement, preferential allotment, rights issue, or any other method aggregating to Rs 140 crore as pre-IPO placement. If such placement is completed, the fresh issue size will be reduced. Out of the total proceeds from the fresh issue, up to Rs 250 crore will be used for funding growth in the financial services business while Rs 135 crore for funding growth in the payment services business. The company will utilise Rs 135 crore for investment in data, ML and AI and product and technology and Rs 70.28 crore for capital expenditure for the payment devices business, and general corporate purposes. The company was established by Bipin Preet Singh and Upasana Taku and its primary goal is to utilise technology to enhance financial inclusion for underserved populations in India. It 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. Additionally, through its subsidiary Zaakpay, it operates a B2B payment gateway for e-commerce businesses and has received RBI approval for its Payment Aggregator (PA) business. As of September 30, 2023, the company has amassed 14.69 crore registered users and enabled 38.10 lakh merchants to conduct online and offline payments. Its Payment GMV has grown annually by 32.33%, while MobiKwik ZIP GMV (Disbursements) surged by 354.86% from Fiscal 2021 to Fiscal 2023. SBI Capital Markets Limited and DAM Capital Advisors Limited are the book-running lead managers for the IPO, and Link Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and the NSE.

MobiKwik Gets SEBI Nod For INR 700 Cr IPO

Mobikwik, which refiled its IPO documents in January, may also pursue a pre-IPO placement of INR 140 Cr Fintech unicorn MobiKwik has secured approval from the Securities and Exchange Board of India (SEBI) for its INR 700 Cr initial public offering (IPO) aimed at expanding its financial services and payments business. The markets regulator issued the observation letter to the Delhi NCR-based unicorn on September 19. In SEBI's parlance, issuance of observation is a green light to go ahead with the public issue. MobiKwik's IPO will entirely comprise a fresh issue of equity shares, with no offer for sale component. Of this, the startup plans to use INR 250 Cr to fuel the growth of its financial services segment. While INR 135 Cr will be used to support the expansion of its payments business, another INR 135 Cr will be invested in data, machine learning (ML), artificial intelligence (AI), and product development. An additional INR 70.28 Cr will go towards capital expenditure for payment devices, with the remainder earmarked for general corporate purposes. Mobikwik, which refiled its IPO documents in January, may also pursue a pre-IPO placement of INR 140 Cr. Should this placement occur, the size of the fresh issue will be adjusted accordingly. The fintech unicorn became profitable in the financial year 2023-24 (FY24), reporting a net profit of INR 14.1 Cr, a significant turnaround from a net loss of INR 83.19 Cr in the previous year, driven by strong business growth. Revenue from operations surged 62% to INR 875 Cr from INR 539.5 Cr in FY23. Founded in 2009 by Bipin Preet Singh and Upasana Taku, Mobikwik is a digital banking platform offering a comprehensive suite of financial products for both consumers and merchants. Its revenue streams include services such as online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine, and merchant cash advances, among others.