Mumbai: Payments Firm One Mobikwik Systems Limited For this the approval of the market regulator Securities and Exchange Board of India has been obtained. ₹1,900 crore initial public offering (IPO), a person aware of the development told Mint.
With SEBI’s nod, the company may consider launching its IPO by the end of this month or early next month, said the person cited above.
A MobiKwik spokesperson could not be immediately reached for comment.
MobiKwik had filed its draft IPO document with SEBI in July.
Including the sale of MobiKwik IPO ₹Offer for sale of new shares and stock value of Rs 1,500 crore ₹400 crores by its promoters and shareholders.
Tech startups like MobiKwik are rushing to take advantage of the positive sentiment created by a record-breaking rally in equity markets, rising public interest in technology stocks and the rapid adoption of online services over the past year due to the pandemic. .
Among MobiKwik’s shareholders participating in the offer for sale are American Express Travel Related Services, which plans to sell shares of value. ₹9.98 crore, Bajaj Finance ( ₹68.98 crore), Sequoia Capital ( ₹95 crores), Cisco Systems ( ₹11.48 cr), Tree Line Asia Master Fund Pte ( ₹24.41 crore) and MobiKwik co-founder Bipin Preet Singh ( ₹113.33 cr) and Upasana Taku ( ₹78.82 crores).
Singh and Taku hold 20.21 per cent and 14.31 per cent respectively in the company. Bajaj Finance holds 13.86%, while Sequoia Capital India Investment holds 13.46%.
In its draft IPO documents, MobiKwik said 40% of net proceeds will be used for organic growth initiatives, “including customer and merchant acquisition and retention, data-science, investments in products and technology, user growth and merchant experience.” . Our platform, as of now, provides cash-collateral to pay-later lending partners”.
It also plans to use the proceeds to apply for additional license approvals and authorizations that would require maintaining minimum capitalization and net worth requirements.
The Gurgaon-based firm said it will continue to seek lucrative inorganic opportunities that fit well with its strategic business objectives and growth strategies, and the amount of net proceeds used for the acquisition will be based on its management’s decision .
For the financial year 2021, the firm reported total income of ₹302.26 crore, up from ₹369.85 crore a year ago. Net loss for the period widened to ₹111.30 crore to ₹99.92 crore in the previous year.
MobiKwik’s business is divided into three segments – Buy Now, Pay Later; consumer payments (MobiKwik Wallet); and payment gateway (Jackpay).
Its Buy Now, Pay Later products- MobiKwik Zip and Zip EMI- provide accessible and affordable short-ticket loans to middle class Indians. It also sells small-ticket money and insurance products to these users.
As of March 2021, its merchant base in India totaled over 3.44 million. It has more than 101.37 million registered users.
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