IPO-bound MobiKwik raises Rs 50 crore in debt funding from BlackSoil

Gurugram-based fintech firm MobiKwik has raised Rs 50 crore (approximately $6 million) in debt funding from Mumbai-based BlackSoil. The debt comes as it prepares for an initial public offering (IPO).

The funds were raised through the issuance of non-convertible debentures (NCDs), with MobiKwik allotting around 800 NCDs in two tranches at an interest rate of 15% per annum.

Pre-IPO financial strengthening

The development comes after the company refiled its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), aiming to raise up to Rs 700 crore through a fresh issue of shares. Notably, this IPO attempt does not include an offer for sale (OFS) component.

Is MobiKwik profitable?

Despite being unprofitable in the fiscal years 2021, 2022, and 2023, MobiKwik turned profitable in the six months ending September 30, 2023, with a profit of $1.1 million (Rs 9.48 crore) on revenue of $29.3 million (Rs 381.09 crore). 

The company's revenue from operations for the fiscal year 2022–2023 increased to Rs 539.47 crore from Rs 526.56 crore in the previous fiscal year. The loss for the year dropped by 34.60% from Rs 128.16 crore in the fiscal year 2022 to Rs 83.81 crore in the fiscal year 2023.

Expanding business operations 

The firm plans to allocate Rs 250 crore to its financial service business, with an additional Rs 135 crore each dedicated to growing its payment service business and strengthening its product and technology offerings.

MobiKwik, founded by Bipin Singh and Upasana Taku, has evolved from a mobile wallet provider to offer a range of financial services, including digital payments, credit, and insurance products. The platform boasts over 146 million registered users and 3.8 million merchant partners.