Mobikwik gets SEBI approval to float ₹700 Crore IPO

24 Sep 2024 , 03:06 PM

Mobikwik, a payment platform, has received approval from the Securities and Exchange Board of India (SEBI) to earn ₹700 Crore in an initial public offering. The IPO, with a face value of ₹2 per share, is a fresh issue of equity shares without an offer for sale component.

Mobikwik aims to invest ₹250 Crore in financial services, ₹135 Crore in payment services, and ₹135 Crore in data, machine learning, and AI breakthroughs.

The remaining ₹70.28 Crore would be used for capital investment in its payment devices business and general corporate purposes.

SBI Capital and DAM Capital Advisors are the book-running lead managers.

The company may raise an additional ₹140 Crore by private placement, preferential allocation, or rights issue as part of a “Pre-IPO placement.” If this is finalised, the new issue size will be adjusted correspondingly.

Bipin Preet Singh and Upasana Taku’s company refiled draft papers with SEBI in January 2024, decreasing the IPO amount from ₹1,900 Crore to ₹700 Crore.

In FY24, the company reported a net profit of ₹14.1 Crore, a significant improvement from the previous year’s loss of ₹83.8 Crore. Revenue from activities increased significantly, hitting ₹875 Crore in FY24 from ₹540 Crore in FY23.

Mobikwik is working to improve financial inclusion for underprivileged groups across India. It provides a wide range of payment and financial services to enterprises and merchants, such as online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine and Merchant Cash Advance.

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