Payment platform Mobikwik gets Sebi nod for ₹700 crore IPO; details here

Gurugram-based One Mobikwik Systems Limited has received final approval from the Securities and Exchange Board of India (SEBI) to raise ₹700 crore through an initial public offering (IPO). The company had refiled its IPO documents with SEBI on January 4 this year.

The IPO, with a face value of ₹2 per share, is entirely a fresh issue of equity shares, with no offer for sale included. The company, in consultation with the book-running lead managers, may explore raising an additional ₹140 crore through various methods, such as private placement, preferential allotment, or rights issue, as part of a "Pre-IPO placement." If this placement is completed, the size of the fresh issue will be adjusted accordingly.

The funds raised from the new issue will be allocated as follows: ₹250 crore for expanding the financial services business, ₹135 crore for growth in the payment services sector, ₹135 crore for investments in data, machine learning, AI, and technology, ₹70.28 crore for capital expenditures related to payment devices, and the remaining amount for general corporate purposes.

Founded by Bipin Preet Singh and Upasana Taku, the company aims to improve financial inclusion for underserved populations in India through innovative technology. It offers a range of payments and financial services for businesses and merchants, including online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine, and Merchant Cash Advance.

In addition, through its subsidiary Zaakpay, the company manages a B2B payment gateway for e-commerce businesses and has received RBI approval for its Payment Aggregator (PA) operations.

As of September 30, 2023, the company has accumulated 146.94 million registered users and facilitated 3.81 million merchants in processing online and offline payments. The Payment GMV has experienced an annual growth rate of 32.33%, while the MobiKwik ZIP GMV (Disbursements) has skyrocketed by 354.86% from Fiscal 2021 to Fiscal 2023.

SBI Capital Markets Limited and DAM Capital Advisors Limited are serving as the book-running lead managers for the IPO, with Link Intime India Private Limited acting as the registrar. Mobikwik shares will be listed on both BSE and NSE.