This is the second time One MobiKwik Systems, parent company of the digital payment service provider, has filed a draft red herring prospectus (DRHP) for IPO with the Securities and Exchange Board of India (Sebi). MobiKwik had abandoned its initial listing plans in 2021, citing weak market conditions.
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The company may also consider a pre-IPO placement of up to Rs 140 crore as a part of the offer, MobiKwik said in the draft papers. If it completes the pre-IPO private placement of shares, the size of the fresh issue will be reduced proportionally, it added.
The Gurgaon-based firm plans to use the net proceeds for growing its business.
According to the offer document, MobiKwik is expected to use Rs 250 crore for growth of its financial services business and Rs 135 crore to grow its payments services business lines, with the rest being invested towards building data, machine learning, and artificial intelligence-related products for users.
In October 2023, MobiKwik got an in-principle approval to run the payment aggregator business, a crucial licence from the Reserve Bank of India for its payment gateway offering Zaakpay. Back in 2021, the banking regulator had rejected MobiKwik’s application for the same licence.
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For the six-month period ended September 30, 2023, MobiKwik recorded a total revenue from operations of Rs 381 crore, with total profits standing at Rs 9.5 crore.In FY23, the company had recorded total revenue from operations of Rs 540 crore, up marginally by 2.5% over the previous fiscal. It managed to reduce its losses by 34% to Rs 83.8 crore in FY23.
Earlier this week, the board of MobiKwik passed a resolution to raise Rs 880 crore via a fresh issue of shares through a public listing.
Interestingly, the current public share sale is less than half of what MobiKwik previously intended to raise through listing in the domestic bourses, as it had set out to raise Rs 1,900 crore ($255 million) during its first attempt at IPO in 2021.