MobiKwik gets SEBI's approval to launch ₹700 crore IPO
MobiKwik has secured approval from the Securities and Exchange Board of India (SEBI) for its initial public offering (IPO). The company aims to raise ₹700 crore through this IPO. It had initially filed its draft red herring prospectus (DRHP) with SEBI in January. MobiKwik's IPO comprises a fresh issue of shares worth ₹700 crore. There is no offer for sale component. ICICI Securities, IIFL Securities, Jefferies India, and JM Financial have been appointed as merchant bankers for this public issue.
MobiKwik's journey and growth
Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik has grown into a prominent player in the digital payment industry. The company offers services such as mobile phone top-ups, utility bill payments, money transfers, online shopping, and even insurance products. It boasts a user base of over 156 million registered users and has facilitated online and offline payments for more than 4.1 million merchants.
MobiKwik's plan to utilize IPO funds
MobiKwik, a competitor to One 97 Communications in India and Affirm Holdings and PayPal Holdings globally, plans to allocate ₹250 crore from its net fresh issue proceeds to its financial services business. Another ₹135 crore will be invested in payment services and ₹135 crore in data, machine learning, artificial intelligence, product development, and technology. Additionally, around ₹70 crore will be used for the payment devices business, with the remaining funds reserved for general corporate purposes.
