Gurugram based Fin-Tech company MobiKwik is coming with the IPO soon. As per its Draft Red Herring Prospectus (DRHP) filed to SEBI, the company will offer Rs. 1,900 Cr. of equity shares.
This Issue is worth Rs. 1,900 Cr. includes fresh issue of shares (IPO) of Rs. 1,500 Cr. and OFS (Offer for Sale) worth Rs. 400 crores comprising Rs. 111 crores by founder Bipin Preet Singh, Rs. 94 crores by Sequoia Capital, Rs. 78 crores by founder Upasana Taku, Rs. 68.9 crore by Bajaj Finance, Rs. 24 crores by Treeline Asia. Rs. 11 crores by Cisco Systems, and Rs. 9.9 crore by American Express.
ICICI Securities, IIFL Securities BNP Paribas, Credit Suisse Securities (India) Private Limited, and Jefferies India have been appointed as merchant bankers/Book runners and advise the MobiKwik on the IPO.
This news has come between when the prime rival Paytm, parent company One97 Communications Ltd. (OCL) has approved the plan at the extraordinary general meeting held on 12 July to issue India’s one of the biggest IPOs of Rs. 16,600 Cr by the end of 2021. OCL will release its DRHP later this week, as per our sources.
Founded in 2009 by Bipin Preet Singh and his wife Upasana Taku, Mobikwik has raised over $165 million, according to start-up data platform Crunchbase.
Reports suggest that Mobikwik is conducting over one million daily transactions across its network, including its digital wallet, UPI, and bill payment services.
As per the DRHP, the company is going to utilize more than 40% of the net IPO proceeds to fund customer & merchant acquisitions by offering discounts, cashback, loyalty points, and other promotional schemes. The company is also investing a handsome proportion in Tech teams, R&D Teams and enhancing user & merchant experience. While a large proportion of our user acquisition has been done organically, we have also laboriously built our merchant and customer base through marketing and promotional offers, as the company said further in DRHP.
Mobikwik’s revenue from operations reduced to Rs. 288.57 Cr in FY21, from Rs. 355.67 Cr in FY20. The all-inclusive losses surged to Rs. 110.99 Cr in FY21 from Rs. 99.16 Cr in FY20, as per their filings.
At a unit level, MobiKwik spent Rs 1.4 for every rupee of earned revenue in FY21.
According to market research, India’s online transacting users have rapidly grown at a CAGR of nearly 15%, from 180 million in FY18 to over 250 million in FY21.
The company asserts that it had over 101.37 million registered users and more than 3.44 million physical retail, e-commerce, and biller partners by the end of FY 2021.
The firm primarily operates across three major segments (As per Revenue breakdown FY21), includes:
1. BNPL (buy now pay later) contributes Rs. 59.81 Cr
2. Payment Gateway Segments, contributes Rs. 19.32 Cr
3. Consumer Payments, contributes Rs. 209.44 Cr