MobiKwik Files DRHP For INR 1,900 Cr IPO About INR 1,500 crore will be primary share sales while up to Rs 400 crore will be secondary share sales where existing investors can sell their stake.
By Prabhjeet Bhatla •
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MobiKwik has announced on Tuesday to have filed its draft red herring prospectus (DRHP) in connection with its initial public offering (IPO) with the Securities and Exchange Board of India (SEBI). The IPO offer size is up to INR 19,000 million, comprising a fresh issue of equity shares of up to INR 15,000 million and an offer for sale of equity shares by certain of our shareholders of up to INR 4,000 million. The company may consider a pre-IPO placement of equity shares of up to INR 4,000 million.
Launched in 2009 by Bipin Preet Singh and Upasana Rupkrishan Taku, MobiKwik is one of the largest mobile wallets (MobiKwik Wallet) 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 the RedSeer Report.
The company leverages big data analytics and deep data science to address the unmet credit needs of the fast-growing digitally paying users by combining the convenience of everyday mobile payments with the benefits of BNPL.
The company 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.
As per the RedSeer Report, India's BNPL market is expected to grow to 80-100 million users and US$ 45-50 billion in spends by FY26. MobiKwik Zip is the company's flagship BNPL product, which is focused on providing the unserved Indian population, their first experience of credit. Its BNPL transactions grew over fivefold in FY21 and as of the end of FY21, it had pre-approved 22.25 million users for MobiKwik Zip.
The company's total income has almost doubled since FY19 and was over INR 3 billion for FY21. It has been profitable at the segment level across all its business segments for the last 2 financial years. The net proceeds are proposed to be utilized for growth initiatives, investment in data sciences, products, and technology, and enhance user and merchant experience.
MobiKwik has raised around $35 million since the beginning of 2021 with the most recent fundraising of $20 million.
"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," said Bipin Preet Singh, managing director, and chief executive officer, MobiKwik.
ICICI Securities Limited, BNP Paribas, Credit Suisse Securities (India) Private Limited, IIFL Securities Limited, and Jefferies India Private Limited are the Book Running lead managers to the IPO.
