Online payments firm MobiKwik has filed its draft documents to raise Rs 1,900 crore via a public offering, the latest among a slew of internet companies wanting to list on stock exchanges.
About Rs 1,500 crore will be primary share sales while up to Rs 400 crore will be secondary share sales where existing investors can sell their stake.
Founded in 2009 by husband-wife duo Bipin Preet Singh and Upasana Taku, One MobiKwik Systems Limited was last valued at $700 million when it raised $20 million last month from Abu Dhabi Investment Authority (ADIA).
For the year ended March 31, 2021, MobiKwik’s total income was down by 18 percent to Rs 302 crore while its losses rose 12 percent to Rs 111 crore.
Its other investors include venture firm Sequoia Capital India, Bajaj Finance, Amex, Tree Line and Cisco.
The promoters Singh and Taku plan to sell about Rs 190 crore of their stake, while Sequoia and Bajaj Finance will sell Rs 95 crore and 69 crore respectively, filings said.
According to a recent report by Credit Suisse, MobiKwik has evolved from a wallet player to offer a wider stack of financial products to its 120 mn customers and three million merchants. It has added UPI, 200+ billers, and also cross-sells loans, insurance, and investment products.
It also offers 15-30 days Buy Now, Pay Later (BNPL) to existing customers on the back of their payments and transaction data Along with credit, the platform also offers insurance and investments in partnership like mutual fund investments, digital gold, etc. Apart from payments, Mobikwik cross-sells other financial products to monetise. It launched app-based lending in 2018 in partnership with NBFCs like Bajaj Fin, Aditya Birla Cap and DMI finance by leveraging data of 120 mn users.
MobiKwik’s IPO process is being run by ICICI Securities, BNP Paribas, Credit Suisse, IIFL Securities and Jeffries.
Its listing plans also come at a time when larger rival Paytm is also planning to file its documents to raise $3 billion at a $30 billion valuation- in what could be India’s biggest IPO ever.