Mobikwik Restarts IPO Process, To File DRHP Next Month

SUMMARY

Mobikwik is working with DAM Capital Advisors Ltd and SBI Capital Markets Ltd for the IPO

The fintech unicorn is looking to raise $84 Mn (about INR 700 Cr) from the IPO and list next year

The fintech major had received SEBI’s approval to launch its IPO in October 2021 but abandoned the public listing plans amid market volatility

One MobiKwik Systems Ltd, the parent company of fintech unicorn Mobikwik, has restarted the preparations for its initial public offering (IPO) and has reportedly selected the banks as it plans to raise $84 Mn (about INR 700 Cr) from the public listing.

As per a Bloomberg report, Mobikwik is working with DAM Capital Advisors Ltd and SBI Capital Markets Ltd for the IPO. The company is looking to file its draft red herring prospectus (DRHP) as soon as December and is likely to go public next year, the report said.

It is pertinent to note that MobiKwik filed DRHP for its IPO of around INR 1,900 Cr with the Securities and Exchange Board of India (SEBI) in 2021 – a year that saw hoards of new-age tech companies going public. As per the draft documents, the IPO comprised issue of new shares worth INR 1,500 Cr and an offer of sale (OFS) element of INR 400 Cr.

The fintech major also received SEBI’s approval to launch its IPO in October that year.

However, the company halted the IPO process amid the downturn in the global equities market. In January last year, the startup clearly said that it would not make a market debut before the market condition stabilised.

Indeed, the year 2002 saw a bloodbath in listed new-age tech stocks as share prices crashed amid global market volatility.

However, the market has stabilised to a large extent this year. Helped by improving bottom lines and growth trajectory, the new-age listed tech startups have made a strong comeback this year and regained investors’ confidence. Shares of Zomato, Paytm, Nykaa, PB Fintech, and most other new-age startups are on an upward momentum this year. This has resulted in many startups expediting their IPO plans.

Meanwhile, Mobikwik has also turned profitable. It claimed to have reported a second profitable quarter in Q2 FY24 with a profit after tax (PAT) of INR 5 Cr.

In a statement last month, the startup said its total revenue rose 17% year-on-year (YoY) to INR 208 Cr during the September quarter.

Next year, several other new-age tech startups, including OYO, GoDigit, and Navi, are expected to launch their IPOs, while Ola Electric, Swiggy, and PayU are also said to be getting ready for their public listings.