MobiKwik Gets SEBI 's Approval For INR 1,900 Cr IPO

SUMMARY

The offer comprises fresh issue of equity shares up to INR 1,500 Cr and an offer for sale for certain existing shareholders up to INR 400 Cr

The fintech startup plans to use the proceeds from the IPO for funding its organic and inorganic growth initiatives and general corporate purposes

It has reserved 4.5 Mn equity shares, or 7% of the fully diluted outstanding shares, under ESOP and as per the Gurugram-based startup, the employees would get high returns through the ESOPs on its public listing

Fintech giant MobiKwik has received approval from the market regulator SEBI for its INR 1,900 Cr IPO. On Thursday, the market regulator gave a go-ahead to the Delhi NCR based fintech startup, sources close to the development told Inc42.

The company is likely to hit the market in two weeks, said the above-mentioned sources.

However, the last update on the website of the Securities and Exchange Board of India (SEBI) that came on October 1 showed that the application was under process.

The offer comprises a fresh issue of equity shares up to INR 1,500 Cr and an offer for sale for certain existing shareholders up to INR 400 Cr.

As per MobiKwik’s draft red herring prospectus (DRHP) filed in July, its offer of sale (OFS) includes the sale of shares worth 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.

The fintech startup plans to use the proceeds from the IPO for funding its organic and inorganic growth initiatives and general corporate purposes.

According to its DRHP, Mobikwik’s revenue from operations fell by 18.7% to INR 288.5 Cr in FY21 from INR 355.6 Cr in the previous year (FY20). The company posted a total income of INR 302 Cr in the March ended financial year, a drop of 18% from INR 369 Cr that was recorded in FY20.

Founded in 2009 by Bipin Preet Singh and his wife Upasana Taku, MobiKwik started as a digital wallet but gradually forayed into a horizontal fintech platform that now offers services such as credit, insurance, and gold loans, among others. The startup was last valued at $700 Mn after it raised $20 Mn (INR 150 Cr) in June this year from Abu Dhabi Investment Authority (ADIA).

Recently, the Gurugram-based fintech startup said that it has reserved 4.5 Mn equity shares, or 7% of the fully diluted outstanding shares, under its Employee Stock Option Plan (ESOP).

MobiKwik competes with another IPO-bound fintech giant Paytm. One97 Communications, the parent company of Paytm, also filed its draft red herring prospectus (DRHP) for public listing in July this year. With the IPO, the unicorn aims to raise INR 16,600 Cr. Its offer comprises a fresh issue of INR 8,300 Cr and an offer for sale (OFS) worth INR 8,300 Cr. The company is yet to receive a nod from SEBI.

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