MobiKwik has reduced the size of its initial public offering (IPO) to Rs 700 crore from Rs 1,900 crore it planned in 2021, according to draft papers the fintech company has filed again with the markets regulator.
The Gurugram-based company said of the total funds raised, it will use Rs 250 crore for growth, Rs 135 crore for financial and payment services business, and Rs 135 crore for investment in data, artificial intelligence and machine learning (AI/ML), product and technology. About Rs 70 crore will be used as capital expenditure for its payment devices business and general corporate purposes.
Mobikwik’s draft red herring prospectus (DRHP) said the IPO will consist entirely of a fresh issue of Rs 700 crore, with a face value of Rs 2 per equity share. It will not have an offer for sale (OFS) component.
It may also consider a pre-IPO placement amounting to Rs 140 crore.
In an interaction with ‘Business Standard’ in September 2023, Upasana Taku, co-founder and chief operating officer (COO) of MobiKwik, had said that the company dropped its plans for an IPO in 2021 as the market was weak.
“When we were going at it (the IPO) last time, we were at the end of the queue in terms of approvals from Sebi. Before us, there were multiple IPOs. And, at the end of it, you could see a waning of the market’s appetite,” Taku said last year.
The company has posted two consecutive quarters of profit, clocking Rs 5 crore in profit after tax (PAT) in Q2 FY24, as compared to Rs 3 crore in Q1 FY24.
Its revenues grew 17.5 per cent to Rs 208 crore in Q2 FY24 from Rs 177 crore in the previous quarter. In Q1 FY24, the company had announced a 68 per cent quarter-on-quarter growth in revenue to Rs 177 crore.
As a result, for the six months ended September 30, 2023, the company’s revenue from operations stood at Rs 381.09 crore and profit was recorded at Rs 9.48 crore.
The company offers payments and financial services such as online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), and Merchant Cash Advance, among other financial products.
It claims to have a user base of 146.94 million along with 3.81 million merchants to conduct online and offline payments as of September 2023.
First Published: Jan 05 2024 | 4:24 PM IST