Digital payment solution provider MobiKwik hopes to raise Rs 880 Cr through IPO
MobiKwik, a provider of digital payment solutions, plans to raise Rs 880 crore through a new equity share offering.
This is MobiKwik’s second attempt at an initial public offering. In July 2021, it submitted a draft red herring prospectus (DRHP), but it later decided against going public due to unfavorable market conditions. Numerous online businesses, including Zomato, MamaEarth, Paytm, and Nykaa, have been doing well in open markets lately, which seems to have given MobiKwik more confidence.
According to MobiKwik’s regulatory filing with the Registrar of Companies (RoC), the board has approved a special resolution to issue new equity shares through an initial public offering (IPO) valued at Rs 880 crore.
In the upcoming weeks, the company plans to submit a second DRHP to the Securities Exchange Board of India (SEBI) and RoC. It’s important to note that the company hopes to raise about half of the funds it set out to in its last attempt to go public. MobiKwik intended to take in Rs 1,900 crore from the public listing, which was made up of an offer of sale worth Rs 500 crore and a fresh issue worth Rs 1,400 crore.
Although MobiKwik has reportedly consulted DAM Capital Advisors and SBI Capital Markets for the public listing preparations, the company will soon name its bankers. In the sale offer, Peak XV (formerly Sequoia India), one of its backers and co-founders, will divest.
Additionally, the Mobikwik board approved a resolution to pre-IPO place shares worth Rs 176 crore with specific investors before the red herring prospectus being submitted to the stock exchange regulator.
When MobiKwik raised the aforementioned round, its last primary valuation was approximately $736 million. However, in October 2021, the company raised $1 billion in a secondary round (the ESOP sale).
In FY23, MobiKwik’s operating revenue stayed constant at Rs 539.46 crore, but the company was able to improve its financial position as losses dropped 34.53% to Rs 83.8 crore in the previous fiscal year.
