MobiKwik Plans to Generate Rs 880 Crore Through Fresh IPO Offering

The board of MobiKwik, a Gurugram-based digital payments and financial services company, has approved a resolution to raise Rs 880 crore through a fresh issue of shares via a public listing. This marks MobiKwik’s second endeavor towards an initial public offering (IPO) following the withdrawal of its listing plans due to unfavorable market conditions.

As per the company filings with the Registrar of Companies (RoC), the upcoming fresh issue will incorporate a pre-IPO placement.

The fintech firm, supported by Peak XV, initially submitted its draft red herring prospectus in July 2021 and obtained approval from the market regulator Securities and Exchange Board of India (SEBI) for its Rs 1,900 crore ($255 million) IPO in October 2021.

Notably, the ongoing public share sale is significantly less than half of MobiKwik’s initial fundraising target through its planned listing on domestic stock exchanges.

Earlier reports from Bloomberg indicated that the company had engaged DAM Capital Advisors and SBI Capital Markets to facilitate its listing preparations, anticipating the share sale to take place in 2024.

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In the previous year, MobiKwik announced its second consecutive quarterly profit for the period ending September 30.

During the September quarter, the company registered a revenue of Rs 208 crore, marking a 17% increase from the preceding three months, with a total profit reaching Rs 5 crore.

Over the six-month period, the startup achieved a total revenue of Rs 385 crore, with a corresponding total profit of Rs 8 crore for the fiscal year 2024.

Providing credit through the Zip franchise and extending personal loans, MobiKwik offers a pay-later option to salaried professionals.

The company asserts a user base of 140 million, with approximately 35 million, constituting a quarter of the total, being active users.