Peak XV-backed Mobikwik refiles DRHP to raise ₹700 crore via IPO

The issue is being made through the book-building process, wherein not less than 75% of the IPO will be available for allocation on a proportionate basis to qualified institutional buyers. Meanwhile, about 15% of the offer will be available for allocation to non-institutional investors, and the rest 10% for retail individual bidders.

The company, in consultation with the book-running lead managers, may consider a further issue of specified securities including private placement, preferential allotment, rights issue, or any other method aggregating to ₹140 crore as Pre-IPO placement. If such placement is completed, the fresh issue size will be reduced.

The proceeds from the fresh issue, to the extent of ₹250 crore, will be used for funding growth in the financial services business, ₹135 crore for funding growth in the payment services business, ₹135 crore for investment in data, ML and AI and product and technology, ₹70.28 crore for capital expenditure for the payment devices business, and general corporate purposes.

Founded in 2009, Mobikwik is one of the largest mobile wallets and buy now, pay later service providers in India, according to its website. It has more than 101 million registered users and over 3 million e-commerce, retail and biller partners. Abu Dhabi Investment Authority, American Express Co. and Peak XV are among its backers.

The company turned profitable toward the end of 2021 but deferred its IPO plans following a rout in technology company shares including that of its larger rival Paytm, which went public in November 2021.

For financial year 2022–23, the company’s revenue from operations has increased to ₹539.47 crore, compared to ₹526.56 crore for fiscal 2021–22. Loss for the year decreased by 34.60% from ₹128.16 crore in fiscal 2022 to ₹83.81 crore in fiscal 2023.

The fintech firm offers users credit under the Zip franchise and provides personal loans as well as a pay-later option to salaried professionals.

Mobikwik claims to have a base of 146.94 million users, with a quarter of them (roughly 35 million) being active.

DAM Capital Advisors, SBI Capital Markets are the book-running lead managers to the issue, while Link Intime India Private Ltd is the registrar.

The equity shares of the company are proposed to be listed on both the stock exchanges, the BSE and the NSE.

MobiKwik, founded by husband-wife duo Bipin Singh and Upasana Taku is the latest Indian startup that is looking to go public this year. Ola Electric and FirstCry filed their draft prospectus for their initial public offerings last month.