MobiKwik Files DRHP for Rs 700 Crore IPO, Eyes Fundraising Again

Chennai: Fintech firm MobiKwik has filed a draft red herring prospectus (DRHP) with the market regulator SEBI to raise Rs 700 crore from its initial public offering.

MobiKwik had attempted to go for an IPO earlier in July 2021 when it had filed a DRHP. But it abandoned public listing later citing weak market conditions. In 2021, MobiKwik had 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.

This time, MobiKwik said it may consider a further issue of specified securities including private placement, preferential allotment, rights issue, or any other method aggregating to Rs 140 crore as ‘pre-IPO placement’. If such placement is completed, the fresh issue size will be reduced, said Entrackr.

According to the company’s latest DRHP, it will use Rs 250 crore from the proceeds of the IPO towards financial service business. It has earmarked Rs 135 crore for funding growth of its payment service business. It also plans to deploy Rs 135 crore for the investment in data, ML and AI and product and technology. Rest of the capital will be used for capital expenditure for the payment devices business, and general corporate purposes.

Bipin Preet Singh is the largest stakeholder in the company with 19.26 per cent stake while Upasana Taku holds 13.09 per cent shares. Further, Bajaj Finance, Peak XV Partners and Net1 Applied Technologies have 13.44 per cent, 16.73 per cent and 10.47 per cent shares, respectively.

The company also turned profitable in H1 of FY24 with Rs 9.5 crore profits along with an operating revenue of Rs 381 crore. In FY23, its operating revenue, however, went up just 2.37 per cent to Rs 539 crore as compared to Rs 526.5 crore in FY22. MobikWik booked a loss of Rs 83.8 crore in FY23 which shrank 34 per cent against Rs 128 crore loss in FY22.