IPO-Bound MobiKwik Raises INR 50 Cr Debt Funding From BlackSoil

IPO-bound MobiKwik has raised INR 50 Cr (about $6 Mn) debt from BlackSoil, as per the startup’s filing with the Ministry of Corporate Affairs (MCA). 

The startup is allotting around 800 non-convertible debentures (NCDs) in two tranches to BlackSoil to raise the funding at 15% interest per annum on the outstanding investment amount.

The development was first reported by Entrackr. 

The fundraise comes a couple of months after MobiKwik bagged a term loan of INR 10 Cr from non-banking financial company (NBFC) Equentia Financial Service Private Limited (CredAble) for its working capital needs. 

Earlier this year, MobiKwik refiled its draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (SEBI). 

The Delhi NCR-based startup is looking to raise up to INR 700 Cr via a fresh issue of shares. The initial public offering (IPO) will not have any offer for sale (OFS) component. 

It is pertinent to note that MobiKwik has slashed its IPO size by almost 63% from INR 1,900 Cr which it was looking to raise when it first filed its DRHP in 2021. At that time, the startup was looking to raise INR 1,500 Cr from a fresh issue of shares and INR 400 Cr via OFS. However, it shelved its IPO plans due to volatile market conditions. 

The startup’s second attempt to go public comes at a time when it has improved its financial performance. MobiKwik turned profitable in the first six months of FY24. It reported a net profit of INR 9.5 Cr in the first half of the ongoing fiscal year. Operating revenue stood at INR 381 Cr, almost 70% of the revenue it earned in the previous fiscal year. 

The startup’s net loss declined 35% to INR 83.8 Cr in FY23 from INR 128.1 Cr in the previous fiscal year. However, operating revenue remained almost flat at INR 539.4 Cr in FY23. 

Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik is a digital banking platform that offers a suite of financial products for both consumers and merchants. It offers online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine, Merchant Cash Advance, among others, to businesses and merchants.

The startup has raised $177 Mn in funding across multiple rounds till date. It entered the coveted unicorn club in 2021 and is backed by the likes of Peak XV Partners and Abu Dhabi Investment Authority.