MobiKwik Takes Another Shot at IPO

The DRHP comes without any offer-for-sale (OFS) component but the company aims to raise Rs 140 crore in a pre-IPO round….reports Asian Lite News

Fintech unicorn MobiKwik on Friday filed its draft red herring prospectus (DRHP) with the markets regulator SEBI in its second attempt, to raise Rs 700 crore this time via fresh issues of shares.

The DRHP comes without any offer-for-sale (OFS) component but the company aims to raise Rs 140 crore in a pre-IPO round.

The company, founded in 2009 by Bipin Preet Singh and Upasana Taku, doesn’t plan to sell any existing shares in the IPO, according to the prospectus.

In 2021, MobiKwik which is backed by Peak XV, Abu Dhabi Investment Authority and American Express, had filed for an IPO to raise about $250 million through sale of new and existing shares, however, it deterred the IPO plans amid the global meltdown and worsening funding winter.

The digital banking platform in October this year released its financial results (unaudited) for the second quarter in the current financial year (FY24) with a 52 per cent growth in revenues over the corresponding period in FY23 and its second consecutive quarter of PAT profitability.

The revenues for the July-September quarter stood at Rs 208 crore, a growth of 17 per cent over the previous quarter in the same fiscal, with a profit after tax (PAT) of Rs 5 crore.

With a 58 per cent increase in revenues compared to the first half in FY23, MobiKwik scaled its revenues to Rs 385 crore with a PAT of Rs 8 crore in H1 FY24.

“Our purpose is to make digital banking services accessible to people across demographics pan-India, and we are seeing positive uptake on our platform. The results are evident with another quarter of sustained revenue growth in line with our vision for the year,” said Taku.

MobiKwik has grown to serve over 140 million registered users across the country, with a merchant network of over 4 million.

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