MobiKwik refiles draft papers with SEBI; slashes IPO size to ₹700 cr

Gurugram-based fintech player One MobiKwik Systems Ltd has revised its initial public offer (IPO) size in its latest Draft Red Herring Prospectus (DRHP) filed with capital markets regulator SEBI (Securities Exchange Board of India) as the company cut down the issue size to ₹700 crore from ₹1,900 crore earlier.

The IPO, with a face value of ₹2, is entirely a fresh issue of equity shares, with no offer-for-sale component. Mobikwik also aims to raise ₹140 crore via a pre-IPO placement.

The issue is being made through the book-building process, wherein not less than 75% of the issue will be available for allocation on a proportionate basis to qualified institutional buyers. At least15% of the issue will be available for allocation to non-institutional investors. Also, around 10% of the issue will be allocated to retail individual bidders.

Of the total funds raised via primary proceeds, ₹70 crore will go towards capital expenditure, ₹250 crore towards boosting financial services business; ₹135 crore will be spent on payment business; and ₹135 crore on advanced technologies like data machine learning and artificial intelligence.

Notably, MobiKwik had first filed papers with the markets regulator in November 2021. However, sensing poor investor enthusiasm at that time, the company had withdrawn the IPO papers.

MobiKwik, meanwhile, says this time, it may consider a further issue of specified securities, including private placement, preferential allotment, rights issue, or any other method aggregating to ₹140 crore as "pre-IPO placement".

“If such placement is completed, the fresh issue size will be reduced.”

Bipin Preet Singh and Upasana Taku-led MobiKwik claims to have acquired around 18.29 million new users every year, between fiscal 2021 and September 30, 2023.

As of September 30, 2023, the company’s total number of registered users stood at 146.94 million. It also claims to have enabled 3.81 million merchants to conduct online and offline payments.

For fiscal 2022–23, the company’s revenue increased to ₹539.47 crore against ₹526.56 crore for fiscal 2021–22. Loss for the year decreased by 34.60% from ₹128.16 crore in fiscal 2022 to ₹83.81 crore in fiscal 2023.

For the six months ended September 30, 2023, revenue stood at ₹381.09 crore and profit at ₹9.48 crore.

MobikWik 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, MobiKwik operates a B2B payment gateway for e-commerce businesses and has received RBI approval for its payment aggregator (PA) business.

SBI Capital Markets Limited and DAM Capital Advisors Limited are the book-running lead managers 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.