MobiKwik looks to raise Rs 880 Cr through IPO

Digital payment solutions provider MobiKwik is all set to raise Rs 880 crore via a fresh issue of equity shares through a public offering. 

This is the second attempt by MobiKwik to go for an IPO. It filed a draft red herring prospectus (DRHP) in July 2021 but later abandoned public listing citing weak market conditions. A slew of internet companies such as Zomato, MamaEarth, Paytm and Nykaa have been performing well in public markets of late, and this appears to have bolstered MobiKwik’s confidence.

The board at MobiKwik has passed a special resolution to issue Rs 880 crore worth of fresh issue of equity shares through IPO, its regulatory filing with the Registrar of Companies (RoC) shows.

The firm will file another DRHP with the Securities Exchange Board of India (SEBI) and RoC in the coming weeks. It’s worth highlighting that the company is looking to raise nearly half of what it aimed at from the previous attempt to go public. MobiKwik planned to mop up Rs 1,900 crore in the public listing which consisted of Rs 1,400 crore fresh issue and Rs 500 crore worth offer of sale.

The firm will finalize bankers soon but according to a Bloomberg report, MobiKwik has consulted DAM Capital Advisors and SBI Capital Markets for the public listing preparations. Its co-founders and backers including Peak XV (formerly Sequoia India) will divest in the offer of sale.

The board at Mobikwik further passed a resolution to issue Rs 176 crore worth of shares (pre-IPO placement) to certain investors before the filing of the red herring prospectus with the stock exchange regulator.

While MobiKwik’s last primary valuation stood at around $736 million when it raised the above round, the company’s valuation touched $1 billion in a secondary round (ESOP sale) in October 2021.

MobiKwik’s revenue from operations remained flat at Rs 539.46 crore in FY23 but managed to improve its bottom line with losses declining 34.53% to Rs 83.8 crore in the last fiscal year.