Mobikwik aims to raise up to Rs 1,900 crore via its initial public providing (IPO), preliminary documents filed with Sebi on Monday showed. The supply consists of fresh issuance worth Rs 1,500 crore and a Rs 400-crore supply for sale (OFS) by a clutch of current shareholders, which includes founders Bipin Preet Singh and Upasana Taku.
The business is looking for a valuation of more than $1 billion for the IPO, sources in the know mentioned.
Mobikwik joins a bunch of start off-ups that are organizing to go public in the coming days and months. Zomato’s Rs 9,375-crore IPO opens for subscription this week although earlier in the day, Paytm’s shareholders authorized the firm’s listing strategy.
The fintech start off-up plans to utilise at least 40% of the net IPO proceeds to fund consumer and merchant acquisition and retention by way of providing discounts, cashbacks, loyalty points and other promotional schemes, invest in tech teams and R&D and boost user and merchant expertise. “…while a significant proportion of our user acquisition has been organic, we have also actively built our customer and merchant base through marketing and promotional offers,” the firm mentioned in the draft red herring prospectus (DRHP). Part of the proceeds will also be used to fund acquisitions that match in nicely with the company’s development approach.
Mobikwik’s income from operations declined to Rs 288.57 crore in the year to March 31, 2021, from Rs 355.67 crore in FY20. Total complete losses elevated to Rs 110.99 crore from Rs 99.16 crore in FY20.
The business claims it had more than 101.37 million registered customers and more than 3.44 million e-commerce, physical retail and biller partners as of March 31, 2021. The firm mostly operates across BNPL (invest in now spend later), customer payments and payment gateway segments.
According to industry investigation firm RedSeer Consulting, India’s on the net transacting customers have swiftly grown at a CAGR of almost 15% from 180 million in FY18 to more than 250 million in FY21.