Mobikwik aims to raise up to Rs 1,900 crore through its initial public offering (IPO), preliminary documents filed with Sebi on Monday showed. The offer consists of fresh issuance worth Rs 1,500 crore and a Rs 400-crore offer for sale (OFS) by a clutch of existing shareholders, including founders Bipin Preet Singh and Upasana Taku.
The company is seeking a valuation of over $1 billion for the IPO, sources in the know said.
Mobikwik joins a bunch of start-ups that are planning to go public in the coming days and months. Zomato’s Rs 9,375-crore IPO opens for subscription this week while earlier in the day, Paytm’s shareholders approved the firm’s listing plan.
The fintech start-up plans to utilise at least 40% of the net IPO proceeds to fund customer and merchant acquisition and retention by way of offering discounts, cashbacks, loyalty points and other promotional schemes, invest in tech teams and R&D and enhance user and merchant experience. “…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 said in the draft red herring prospectus (DRHP). Part of the proceeds will also be used to fund acquisitions that fit in well with the company’s growth strategy.
Mobikwik’s revenue from operations declined to Rs 288.57 crore in the year to March 31, 2021, from Rs 355.67 crore in FY20. Total comprehensive losses increased to Rs 110.99 crore from Rs 99.16 crore in FY20.
The company claims it had over 101.37 million registered users and more than 3.44 million e-commerce, physical retail and biller partners as of March 31, 2021. The firm primarily operates across BNPL (buy now pay later), consumer payments and payment gateway segments.
According to market research firm RedSeer Consulting, India’s online transacting users have rapidly grown at a CAGR of nearly 15% from 180 million in FY18 to over 250 million in FY21.