MobiKwik To Raise Rs. 880 Crore Through IPO

Digital payment solutions provider MobiKwik is set to raise Rs 880 crore through an initial public offering (IPO), with the board passing a special resolution regarding this. The IPO is likely to consist of a fresh issue and offer for sale, which will see co-founders and backers, including Peak XV (formerly Sequoia India), offloading part of their stakes.

This is the second IPO attempt by Mobikwik as in July 2021 the company was compelled to withdraw the Draft Red Herring Prospectus (DRHP) on account of a weak market condition. Through the latest IPO, for which DRHP will be duly submitted, the company is planning to raise Rs. 880 crore, which is nearly half of what it had planned previously given that it also plans to raise Rs. 176 crore through pre-IPO placement.

The new decision to conduct an IPO has been undertaken in light of the latest market trend, wherein a slew of internet companies such as Zomato, MamaEarth, Paytm and Nykaa have been faring well in the equity market. According to a Bloomberg report, MobiKwik has consulted DAM Capital Advisors and SBI Capital Markets for public listing preparations.

The company’s valuation touched $1 billion in a secondary round (ESOP sale) in October 2021, up from $736 million at the time of the last primary valuation. In the last fiscal year (FY) MobiKwik reported a revenue of Rs. 539.46, which is flat compared to the previous fiscal year, while net losses declined by 34.53% to Rs 83.8 crore.