Gurugram-based fintech unicorn MobiKwik gets SEBI approval to launch IPO

Gurugram-based fintech unicorn Mobikwik has received final approval from the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) worth Rs 700 crore.

The IPO will consist entirely of a fresh issue of equity shares with a face value of Rs 2 each, and there will be no offer for sale component.

The company may also explore raising an additional Rs 140 crore through a pre-IPO placement, which could involve methods like private placement, preferential allotment

Gurugram-based fintech unicorn Mobikwik has received final approval from the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) worth Rs 700 crore.

The IPO will consist entirely of a fresh issue of equity shares with a face value of Rs 2 each, and there will be no offer for sale component.

The company may also explore raising an additional Rs 140 crore through a pre-IPO placement, which could involve methods like private placement, preferential allotment, or rights issues.

Allocation of IPO funds

Mobikwik has outlined clear plans for the use of the funds raised through its IPO. A significant portion, Rs 250 crore, will be directed toward expanding its financial services business.

Additionally, Rs 135 crore will be used to strengthen its payment services, and another Rs 135 crore is allocated for investments in data, machine learning, artificial intelligence, and other technological innovations.

Furthermore, Rs 70.28 crore is earmarked for capital expenditure on its payment devices business, and the remaining funds will be used for general corporate purposes.

Company’s financial turnaround

MobiKwik reported a net profit of Rs 14.1 crore in FY24, a sharp contrast to its loss of Rs 83.8 crore in FY23. 

The company’s revenue from operations also saw a substantial rise, reaching Rs 875 crore in FY24, up from Rs 540 crore in the previous fiscal year.

What does MobiKwik do?

Founded by Bipin Preet Singh and Upasana Taku, Mobikwik provides a wide array of payment and financial services, including online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine, and Merchant Cash Advance. 

Through its subsidiary, Zaakpay, Mobikwik operates a B2B payment gateway catering to e-commerce businesses. Zaakpay has received approval from the Reserve Bank of India (RBI) to function as a Payment Aggregator (PA).

By the end of September 2023, Mobikwik had registered 146.94 million users and enabled 3.81 million merchants to process payments both online and offline.

Growth in payment volume

The company has experienced robust growth in its payment gross merchandise value (GMV), which has grown at an annual rate of 32.33%. Additionally, its MobiKwik ZIP GMV (disbursements) saw an impressive surge of 354.86% between Fiscal 2021 and Fiscal 2023.

SBI Capital Markets and DAM Capital Advisors are the lead managers for the IPO, and the equity shares are expected to be listed on the BSE and NSE.