SUMMARY
- MobiKwik secures SEBI approval for a ₹700 crore IPO to expand payments and financial services.
- The company recorded significant growth in FY24, with revenue reaching ₹875 crore and profitability of ₹14 crore.
- IPO funds will be allocated to technology investments, payment services expansion, and general corporate purposes.
MobiKwik, the Gurugram-based digital payments and financial services platform, has secured final approval from the Securities and Exchange Board of India (SEBI) for a ₹700 crore Initial Public Offering (IPO). This approval comes after MobiKwik refiled its IPO documents in January 2024. The IPO will be a fresh issue of equity shares, with no offer-for-sale (OFS) component, allowing the company to raise the entire sum directly.
In line with market practices, MobiKwik may also consider an additional issuance of securities aggregating up to ₹140 crore through private placement, preferential allotment, or rights issues before the IPO. If this option is exercised, the fresh issue size will be adjusted accordingly.
The company plans to allocate the IPO proceeds strategically across several key areas:
- ₹250 crore will be dedicated to expanding its financial services offerings.
- ₹135 crore will go towards enhancing its payment services.
- ₹135 crore will be used to invest in data, artificial intelligence (AI), machine learning (ML), and other technological advancements.
- ₹70.28 crore is earmarked for capital expenditure on its payment device business.
- The remaining funds will be used for general corporate purposes.
MobiKwik, co-founded by Bipin Preet Singh and Upasana Taku, provides a range of services, including online payments, Kwik QR scan-and-pay, MobiKwik Vibe (Soundbox), and MobiKwik EDC machines. Through its subsidiary Zaakpay, the company operates a business-to-business (B2B) payment gateway for e-commerce firms, which recently received approval from the Reserve Bank of India (RBI) for its Payment Aggregator business.
In FY24, MobiKwik reported significant growth, with revenue from operations increasing to ₹875 crore from ₹539 crore in FY23. The company also achieved profitability in FY24, posting a profit of ₹14 crore compared to a loss of ₹84 crore the previous fiscal year. MobiKwik’s gross merchandise value (GMV) for payments grew at an annual rate of 32.33%, while its MobiKwik ZIP GMV (disbursements) surged by 354.86% between FY21 and FY23.
The IPO will be managed by SBI Capital Markets and DAM Capital Advisors, with Link Intime India Private Limited acting as the registrar.
Separately, MobiKwik has faced challenges with its peer-to-peer (P2P) lending platform, Xtra, following the RBI’s regulatory crackdown on P2P lending activities. Several investors have reported issues with withdrawals and changes to the platform’s policy.
