Mobikwik Secures SEBI Nod for ₹700 Crore IPO

24 Sep 2024 , 10:58 AM

Mobikwik has received approval from the Securities and Exchange Board of India (SEBI) to raise ₹700 Crore through an Initial Public Offering (IPO).

The IPO will consist entirely of a fresh issue of equity shares, with no offer-for-sale component. Each share has a face value of ₹2. Mobikwik plans to utilize ₹250 Crore from the IPO proceeds to expand its financial services division.

₹135 Crore will be allocated to drive growth in the company’s payment services, aimed at enhancing its offerings.

Another ₹135 Crore is set aside for investments in data, machine learning, and AI technologies to improve operational efficiency and innovation.

A sum of ₹70.28 Crore will be used for capital expenditure in Mobikwik’s payment devices business, as well as for general corporate purposes.

The company may explore raising an additional ₹140 Crore through options like private placement, preferential allotment, or a rights issue. If this happens, the fresh issue size will be adjusted accordingly.

SBI Capital and DAM Capital Advisors are acting as the lead managers for the IPO.

Mobikwik refiled its draft papers with SEBI in January 2024, reducing the IPO size from ₹1,900 Crore to ₹700 Crore. In FY24, Mobikwik turned profitable, reporting a net profit of ₹14.1 Crore, a sharp improvement from the ₹83.8 Crore loss in FY23. Revenue from operations rose to ₹875 Crore in FY24, up from ₹540 Crore in FY23, marking significant growth.

Mobikwik aims to improve financial inclusion across India by offering a wide range of payment and financial services to both consumers and merchants.

Key services include online payment checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine, and Merchant Cash Advance services.

Mobikwik, through its subsidiary Zaakpay, operates a B2B payment gateway serving e-commerce businesses. Zaakpay has also received RBI approval to operate as a Payment Aggregator (PA).

As of September 2023, Mobikwik has registered 146.94 million users and enabled 3.81 million merchants to process payments both online and offline. The company’s Payment GMV (Gross Merchandise Value) has grown at an annual rate of 32.33%.

MobiKwik ZIP GMV (Disbursements) saw substantial growth, increasing by 354.86% from Fiscal 2021 to Fiscal 2023.