MobiKwik files fresh IPO papers; to raise Rs 700 crore

MUMBAI: In what will be its second attempt at going public,One MobiKwik Systems, the parent company of fintech firm MobiKwik on Friday filed fresh draft red herring prospectus (DRHP) with market regulator Securities and Exchange Board of India (SEBI) to raise Rs 700 crore through fresh issue of shares.

The size of the proposed initial public offering (IPO) is over 50% lower than the previous issue which was planned at Rs 1,900 crore. The IPO does not have an offer for sale (OFS) component.

In 2021, MobiKwik had attempted to get listed on the bourses but stalled its IPO plans on the back of choppy markets and a dismal market debut by bigger peer Paytm. The company said that it may undertake a pre-IPO placement worth up to Rs 140 crore.

MobiKwik will use the IPO proceeds to fund growth of its financial services and payment services businesses and make investments in data and technology tools like AI, ML. In an interview with TOI last year, co-founder and CEO Bipin Preet Singh had told that the company’s digital credit GMV (gross merchandise value) has seen a multi-fold growth over the past few years.

For the six months ended September 2023, the company’s revenue from operations stood at Rs 381 crore. The startup also reversed losses it reported at the end of FY23 to post profits of Rs 9.5 crore during the period. It had recorded losses of Rs 83.8 crore in FY23. MobiKwik joins a batch of startups including Ola Electric, FirstCry and Oyo which are planning to go public in 2024.