Fintech firm MobiKwik is aiming to raise up to Rs. 880 crore via a fresh issue of shares in its upcoming initial public offering (IPO), according to an exclusive report by Inc42. As per the resolution read by Inc42, there will be no offer for sale of equity shares by existing shareholders.
MobiKwik will now have to pass the resolution for the IPO offer post the approval of the same, the company will likely file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI).
According to the report, the IPO offer will also include a pre-IPO placement aggregating up to Rs. 176 crore to certain investors prior to filing the red herring prospectus (RHP) with SEBI.
“It must be noted that the startup has almost halved its IPO size compared to its DRHP, which it filed in July 2021. At the time, MobiKwik was looking to raise INR 1,900 Cr through the issue,” the report stated.
Notably, in FY23, MobiKwik has reported that its net loss fell 35% to Rs. 83.8 crore from Rs. 128.1 crore in FY22. While its total expenses fell 5% to Rs. 617 crore in FY23 against Rs. 652.5 crore in FY 22.
Founded in 2009 by Bipin Preet Singh and Upasana Taku, the company commenced operations as a mobile wallet to make digital payments convenient for users. According to the company, it has over 140 million registered users and more than 3.7 million ecommerce, physical retail and biller partners.
