Sebi Approves INR 700 Crore IPO of Payment Platform MobiKwik

Nitin Konde, Apoorva Bajj

Sep 25, 2024 — 2 min read

Sebi Approves INR 700 Crore IPO of Payment Platform MobiKwik

The Securities and Exchange Board of India (SEBI) has given the payment platform MobiKwik permission to earn INR 700 crore through an initial public offering (IPO). There is no offer-for-sale component to the IPO, which is purely a new issue of equity shares with a face value of INR 2 per share.

Using INR 250 crore, MobiKwik intends to build its financial services division, accelerate growth in its payment services with INR 135 crore investment, and devote another INR 135 crore to data, machine learning, and artificial intelligence breakthroughs.

Together with general corporate factors, the remaining INR 70.28 crore will be earmarked for capital expenditures in its payment devices division.

Link Intime India Private Limited is the registrant of the offer, and SBI Capital Markets Limited and DAM Capital Advisors Limited are the book-running lead managers for the initial public offering (IPO). It has been suggested that the equity shares be exchanged on both the BSE and the NSE.

Exploring Options for Raising an Additional INR 140 Crore

As part of a "Pre-IPO placement," the company may consider raising an additional INR 140 crore through options such as a rights issue, preferential allotment, or private placement. The fresh issue size will be adjusted proportionately if this is finalized.

In January 2024, the company founded by Bipin Preet Singh and Upasana Taku refiled its draft papers with Sebi, resulting in a substantial reduction in the size of the IPO from INR 1,900 crore to INR 700 crore.

The company achieved profitability in FY24, generating a net profit of INR 14.1 crore, a significant improvement from the INR 83.8 crore loss it experienced in FY23. The revenue from operations also experienced a significant increase, rising from INR 540 crore in FY23 to INR 875 crore in FY24.

The Company Focuses on Providing Financial Solutions

MobiKwik provides businesses and merchants with a wide range of financial and payment services. Currently, the company offers services such as online transactions, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine, and Merchant Cash Advance.

The company also operates a B2B payment gateway specifically designed for e-commerce enterprises through its subsidiary, Zaakpay. Additionally, RBI approval has been granted to Zaakpay for Payment Aggregator (PA) operations.

Mobikwik has registered 146.94 million users and enabled 3.81 million merchants to process online and offline payments as of September 30, 2023. MobiKwik ZIP GMV (Disbursements) experienced a remarkable 354.86% increase from Fiscal 2021 to Fiscal 2023, while the Payment GMV has experienced an annual growth rate of 32.33%.