Digital wallet company Mobikwik to file its DRHP with SEBI for IPO

Mobikwik, a Gurugram-based digital payments startup, has begun to gain traction in its plans to go public in the coming months. The decade-old company is preparing to file a draft prospectus for a Mumbai initial public offering that could raise up to $300 million, according to Bloomberg's report.

The news followed rival Paytm's plan to file a DRHP ahead of its planned IPO in November, as well as a slew of new-age Indian startups looking to go public later this year.

According to the reports, Mobikwik completed the paperwork on Thursday and plans to file it with the Securities and Exchange Board of India (SEBI) soon.

The Gurugram firm expects to raise $250 million in new funds through its Initial Public Offering (IPO), while MobiKwik's existing shareholders plan to sell approximately $50 million in stock.

Last month, MobiKwik had raised $20 million from the UAE's Sovereign Wealth Fund, the Abu Dhabi Investment Authority. The ADIA has acquired a minority stake in the $700 million-capitalized fintech startup. The company's founders, Bipin Preet Singh and Upasana Taku, now own approximately 33.2 percent of the company, with Abu Dhabi's sovereign wealth fund acquiring a new minority stake of 2.7%.

Furthermore, according to sources, Mobikwik may seek a $1 billion valuation for its IPO. Several high-profile startups, including Delhivery, Nykaa, and PolicyBazaar, are also expected to go public this year.

In September 2020, the fintech firm announced that it had begun the process of going public by the end of 2022. As part of this process, Senior Vice President Chandan Joshi was promoted to Co-Founder of the company.

The digital payments startup was founded in 2009 by Bipin Preet Singh and Upasana Taku.

It began as a digital wallet service for paying mobile recharges and bills, but it has since evolved into a broad fintech platform that offers its customers a variety of financial services such as credit, insurance, and gold loans.

Mobikwik claims to have issued over 19 lakh loans via its Digital Credit Line, which instantly transfers cash to users' wallets. In 2018, it acquired Clearfunds, a Mumbai-based mutual fund company, to enter the wealth management industry through mutual funds.

The startup has raised approximately Rs. 223 Cr ( $29.56 million) to date from investors such as MK SPV IX, a Cayman Island-based LP, Sequoia Capital, American Express, and Bajaj Finserv, among others.

Mobikwik's platform processes approximately one million transactions per day, which include digital wallets, UPI, and bill payment services. It also claims to have 107 million users and three million merchants on its platform.

Companies such as Mobikwik have seen a significant increase in digital payments across India as a result of the Covid-19 pandemic-driven digitalization of the consumer economy.

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