Fintech Unicorn MobiKwik Refiles DRHP; To Raise Rs 700 Crore The company had earlier filed its DRHP in July 2021 for a Rs 1,900-crore IPO

By Entrepreneur Staff

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Gurugram-based fintech unicorn MobiKwik has filed its Draft Red Herring Prospectus (DRHP) with capital market regulator SEBI to raise Rs 700 crore for its initial public offering (IPO).

This comes a few days after it was reported by the media that the board of digital payments and fintech unicorn Mobikwik has passed a resolution to raise INR 880 crore through an IPO. This is the company's second attempt towards an IPO. It had earlier filed its draft red herring prospectus (DRHP) in July 2021 for a Rs 1,900-crore IPO to SEBI. But, according to media reports, after Paytm went public and saw a 25% dip on its debut and the economy witnessed a slowdown, Mobikwik put its IPO plans on hold, citing market conditions.

Founded in 2009 by Bipin Preet Singh and Upasana Taku, the fintech unicorn offers digital payment solutions, including mobile wallet and buy-now-pay-later (BNPL) product. The company caters to businesses and merchants with 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 business.

The Issue is being made through the book-building process, wherein not less than 75% of the issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the issue shall be available for allocation to non-institutional investors, and not more than 10% of the issue shall be available for allocation to 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 Rs 140 crore as "Pre-IPO placement". If such placement is completed, the fresh issue size will be reduced.

As of September 30, 2023, the company claims to have amassed 146.94 million registered users and enabled 3.81 million merchants to conduct online and offline payments. For fiscal 2022–23, the company's revenue from operations has increased to Rs 539.47 crore against Rs 526.56 crore for fiscal 2021–22. Loss for the year decreased by 34.60% from Rs 128.16 crore in fiscal 2022 to Rs 83.81 crore in fiscal 2023. For the six months ended September 30, 2023, revenue from operations stood at Rs 381.09 crore and profit after tax stood at Rs 9.48 crore.

The proceeds from the fresh issue, to the extent of Rs 250 crore will be used for funding growth in the financial services business, Rs 135 crore for funding growth in the payment services business, 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.

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