Gurugram-based One MobiKwik Systems Limited, has refiled its Draft Red Herring Prospectus (DRHP) with capital market regulator Sebi to raise Rs 700 crore for its initial public offering (IPO).
The IPO is with a face value of Rs 2 is entirely a fresh issue of equity shares with no offer for sale component.
The Issue is being made through the book-building process, wherein not less than 75% of the issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the issue shall be available for allocation to non-institutional investors, and not more than 10% of the issue shall be available for allocation to retail individual bidders.
The platform business with a two-sided payments network, consisting of consumers and merchants, , in consultation with the book-running lead managers, may consider a further issue of specified securities including private placement, preferential allotment, rights issue, or any other method aggregating to Rs 140 crore as “Pre-IPO placement”.
If such placement is completed, the fresh issue size will be reduced.
The proceeds from the fresh issue, to the extent of Rs 250 crore will be used for funding growth in the financial services business, Rs 135 crore for funding growth in the payment services business, Rs 135 crore for investment in data, ML and AI and product and technology, Rs 70.28 crore for Capital expenditure for the payment devices business, and general corporate purposes.
Established by Bipin Preet Singh and Upasana Taku, MobiKwik caters to businesses and merchants with extensive payments and financial services such as online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine, and Merchant Cash Advance.
Additionally, through its subsidiary Zaakpay, it operates a B2B payment gateway for e-commerce businesses and has received RBI approval for its Payment Aggregator (PA) business.
As of September 30, 2023, the company has amassed 146.94 million registered users and enabled 3.81 million merchants to conduct online and offline payments. Its Payment GMV has grown annually by 32.33%, while MobiKwik ZIP GMV (Disbursements) surged by 354.86% from Fiscal 2021 to Fiscal 2023.
For fiscal 2022–23, the company’s revenue from operations has increased to Rs 539.47 crore against Rs 526.56 crore for fiscal 2021–22. Loss for the year decreased by 34.60% from Rs 128.16 crore in fiscal 2022 to Rs 83.81 crore in fiscal 2023.
For the six months ended September 30, 2023, revenue from operations stood at Rs 381.09 crore and profit after tax stood at Rs 9.48 crore.
SBI Capital Markets Limited and DAM Capital Advisors Limited are the book-running lead manager for the IPO, and Link Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.