Payment Platform Mobikwik gets Sebi nod for Rs 700 crore IPO
Gurugram-based One Mobikwik Systems Limited, a platform business with a two-sided payments network, consisting of consumers and merchants, has received final observation from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise Rs 700 crore through an initial public offering (IPO).
The Company had refiled its IPO papers with Sebi on January 4, 2024.
The IPO is with a face value of Rs 2 is entirely a fresh issue of equity shares with no offer for sale component.
The company, in consultation with the book-running lead managers, 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.
The proceeds from the fresh issue, to the extent of Rs 250 crore will be used for funding growth in the financial services business, Rs 135 crore for funding growth in the payment services business, Rs 135 crore for investment in data, ML and AI and product and technology, Rs 70.28 crore for Capital expenditure for the payment devices business, and general corporate purposes.
Established by Bipin Preet Singh and Upasana Taku, leveraging their prior experience in developing scalable technology and financial products. The company’s primary goal is to utilize technology to enhance financial inclusion for underserved populations in India. It caters to businesses and merchants with extensive payments and financial services such as online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine, and Merchant Cash Advance.
Additionally, through its subsidiary Zaakpay, it operates a B2B payment gateway for e-commerce businesses and has received RBI approval for its Payment Aggregator (PA) business.
As of September 30, 2023, the company has amassed 146.94 million registered users and enabled 3.81 million merchants to conduct online and offline payments. Its Payment GMV has grown annually by 32.33%, while MobiKwik ZIP GMV (Disbursements) surged by 354.86% from Fiscal 2021 to Fiscal 2023.
SBI Capital Markets Limited and DAM Capital Advisors Limited are the book-running lead manager for the IPO, and Link Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.
