Exclusive: MobiKwik to raise Rs 223 Cr via equity, debt and warrants

Unlike every other consumer-facing payment, MobiKwik has not raised much money and has been exploring sustainable growth. The company hardly raised any significant amount as compared to its peers in the past three-four years. 

However, that’s not the case anymore as MobiKwik is raising around Rs 223 crore from unknown investors through a Cayman Island-based L.P. named MK SPV IX in an equity cum debt deal. The Gurugram-based firm has issued 1,17,585 compulsorily convertible debentures (CCDs) priced at Rs 9,440 each to MK SPV IX L.P to raise Rs 111 crore according to regulatory filings.

MobiKwik has also entered into a securities subscription agreement with the same investor to issue 1 Share warrant (Series F tranche I warrant) for an aggregate amount of Rs 75 crore ($10 million). 

Separately, MK SPV IX L.P also picked up 39,185 Series F compulsorily convertible preference shares (CCPS) along with 10 equity shares at a price of Rs 9,440 per share to raise an additional Rs 37 crore.

Prior to a fresh infusion of funds, MobiKwik had Rs 8.74 crore from New Delhi Television Ltd (NDTV) and Trifecta Capital in July 2019 and raised Rs 24 crore in December 2018 led by Sequoia. In 2017, it had secured Rs 225 crore from Bajaj Finserv (NBFC). Following allotment, promoters stake in the company will be diluted to 33.45% while foreign entities will control 58.68% of the shareholding.

The fresh round is a much-needed round for MobiKwik and would allow it to prepare for the next 2-3 years. Its co-founders have also contemplated going public in the next two years. The proceeds would be pivotal in readying the company for a public listing.

Unfazed by the unprecedented burn of Paytm, PhonePe, Google Pay and Amazon Pay, MobiKwik opted for stable growth in FY19. This could also be observed from the company’s financial performance in FY19: MobiKwik recorded a 92.3% jump in operational revenue to Rs 148.51 crore in FY19 from Rs 77.21 crore in FY18. Importantly, it also shrank losses by 32.13% to Rs 137.75 crore from Rs 202.98 crore in FY18. 

Of late, MobiKwik has been powering utility bills and recharges payment verticals for Flipkart. Entrackr had exclusively reported the development in February this year. Last year, it also applied for a corporate agency (composite) license with the Insurance Regulatory Development Authority (IRDA). 

If MobiKwik gets the license, it will start aggregating insurance products of third-party companies such as ICICI Lombard, Reliance, Aditya Birla and others.