Key things to know about MobiKwik upcoming Rs 700 crore IPO

After FirstCry, Fintech startup MobiKwik has refiled its DRHP with the SEBI to raise Rs 700 crore via an initial public offering (IPO).

The IPO will consist entirely of a fresh issue of shares, with no Offer for Sale (OFS) component. The shares, with a face value of Rs 2 each, will be allocated with 75% reserved for qualified institutional buyers, 15% for Non-Institutional investors, and a maximum of 10% for retail individual investors.

MobiKwik also plans a pre-IPO placement of shares worth around Rs 140 crore. The size of the fresh issue will be smaller if such placement is successful.

What it plans to do with the IPO proceeds

MobiKwik intends to utilise the funds raised for various growth initiatives, including Rs 250 crore for expanding the financial services business, Rs 135 crore each for growing the payment services and investing in data, AI, and other technologies, and over Rs 70.28 crore for capital expenditure in the payment devices sector.

Is MobiKwik profitable?

MobiKwik has been unprofitable in the fiscal years 2021, 2022, and 2023. However, The company 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.

Bipin Preet Singh, a major promoter of the company, holds a significant 19.26% stake. Bajaj Finance Limited has a substantial shareholding of 13.44%. Upasana Rupkrishan Taku, who co-founded MobiKwik, owns 13.09% of the company. Close behind is Peak XV Partners Investments IV, holding a 13.06% stake.

The book-running lead managers (BRLM) for the IPO are SBI Capital Markets Limited and DAM Capital Advisors Limited, while Link Intime India Private Limited serves as the offer registrar. The equity shares will be listed on the BSE and NSE.