Mobikwik secures SEBI nod for Rs 700 Cr IPO

Payment platform Mobikwik has received final approval from the Securities and Exchange Board of India (SEBI) to raise Rs 700 crore through an initial public offering (IPO). The Gurugram-based company had refiled its IPO documents with the regulator in January this year.

The IPO will consist entirely of a fresh issue of equity shares, with no offer-for-sale component. In consultation with the book-running lead managers, the company may consider an additional issue of securities, including private placement, preferential allotment, or rights issue, aggregating up to Rs 140 crore as a pre-IPO placement. Accordingly, the fresh issue size will be reduced, the company said in a press release.

The company has recently raised Rs 50 crore in debt from BlackSoil Capital. Entrackr exclusively reported about the development in March.

The company plans to allocate Rs 250 crore from the IPO proceeds to expand its financial services business, Rs 135 crore to grow its payment services, Rs 135 crore for investments in data, AI, ML, and technology, Rs 70.28 crore for capital expenditure on its payment devices business, and the remainder for general corporate purposes.

Founded by Bipin Preet Singh and Upasana Taku, Mobikwik offers a range of payments and financial services to businesses and merchants, including online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine, and Merchant Cash Advance.

Additionally, through its subsidiary Zaakpay, Mobikwik operates a B2B payment gateway for e-commerce businesses which also received RBI approval for its Payment Aggregator (PA) business.

As per TheKredible, MobiKwik’s revenue from operations grew to Rs 875 crore in FY24 from Rs 539 crore in FY23. The company also turned profitable in FY24 with Rs 14 crore profits against Rs 84 crore loss in FY23.

As per the company, its payment gross merchandise value (GMV) has grown at an annual rate of 32.33%, while its MobiKwik ZIP GMV (disbursements) surged by 354.86% between FY21 and FY23.

SBI Capital Markets and DAM Capital Advisors are the lead managers for the IPO, with Link Intime India Private Limited serving as the registrar.

The company was also in the news for its challenges with its P2P lending platform, Xtra. Following RBI's crackdown on P2P lending, Xtra investors have reported issues with withdrawals and changes in the platform’s policy.