Exclusive: MobiKwik Bags INR 100 Cr In Pre IPO Round From Bennett Coleman

IPO-bound digital payment solution provider MobiKwik has raised around INR 100 Cr in a pre-IPO placement from Bennett Coleman and Company Limited.

As per the recent regulatory filings, the startup has approved allotment of 8,83,159 equity shares to Bennett Coleman and Company Limited, the parent company of Times Group.

In the month of July, MobiKwik had filed a draft red herring prospectus with the market regulator SEBI for INR 1,900 Cr IPO. It’s IPO offer included an issue of fresh shares worth INR 1,500 Cr and secondary shares worth INR 400 Cr which the existing investors can sell.

As per the DRHP filing, an offer of sale (OFS) includes INR 9.9 Cr by American Express, INR 68.9 Cr from Bajaj Finance, INR 11 Cr by Cisco Systems, INR 94 Cr by Sequoia, INR 24 Cr by Treeline Asia, INR 111 Cr from founders (promoters) such as Bipin Preet Singh and INR 78 Cr from Upasana Taku.

In its DRHP, MobiKwik had mentioned this in consultation with the book running lead managers (BRLMs), may consider a Pre-IPO Placement of such for cash consideration aggregating up to INR 400 Cr. 

The startup had said, “If the Pre-IPO Placement is completed, the number of equity shares issued pursuant to the Pre-IPO Placement will be reduced from the fresh issue, subject to a minimum Offer size of 10% of the post-offer paid-up equity share capital of our company being offered to the public.”

With this respect, MobiKwik may raise the remaining INR 300 Cr from investors in the coming days. With this investment, Bennett Coleman and Company Limited will hold 2.63% on a fully diluted basis. 

Founded in 2009 by Bipin Preet Singh and Upasana Taku, Gurugram-based MobiKwik entered the coveted unicorn club this year after a few of its employees exercised employee stock option plans (ESOPs). The secondary round was led by former Blackstone India head Mathew Cyriac. This helped MobiKwik’s valuation soar past $1.5 Bn. 

MobiKwik had received approval for its IPO from SEBI on October 9, but has delayed its public listing post much anticipated Paytm’s dismal market debut.