Three points you will get to know in this article:
- MobiKwik eyes Rs 880 crore IPO, boosted by recent market wins and overcoming earlier challenges.
- Enlists DAM Capital Advisors and SBI Capital Markets, targeting almost half of its previous IPO goal.
- Demonstrates financial strength, slashing losses by 34.53% amid consistent revenue, positioning for future growth and stability.
MobiKwik, the leading digital payment solutions provider, is gearing up to secure Rs 880 crore through a new issuance of equity shares via a public offering. This marks MobiKwik’s second venture into the IPO arena, following an initial attempt where it submitted a draft red herring prospectus (DRHP) in July 2021. However, due to challenging market conditions at the time, the company decided to postpone its public listing. Encouraged by the recent success of various internet companies like Zomato, MamaEarth, Paytm, and Nykaa in the public markets, MobiKwik has regained confidence and is ready for another IPO endeavor.
Fresh Equity Issuance and IPO Preparation
The company’s board has formally approved a special resolution to introduce a fresh issuance of equity shares amounting to Rs 880 crore through the IPO, as per its regulatory filing with the Registrar of Companies (RoC). The company is set to submit a fresh Draft Red Herring Prospectus (DRHP) to the Securities Exchange Board of India (SEBI) and RoC in the upcoming weeks. It’s noteworthy that the company aims to secure nearly half of its previous target from the last attempt to go public. In its initial public offering (IPO), MobiKwik had envisioned raising Rs 1,900 crore, comprising a Rs 1,400 crore fresh issue and a Rs 500 crore offer for sale.
MobiKwik’s Engagement with Financial Advisors
The company is currently in the process of finalizing its banking partners. According to a report from Bloomberg, MobiKwik has engaged with DAM Capital Advisors and SBI Capital Markets to facilitate the preparations for the public listing. The co-founders and supporters, including Peak XV (formerly known as Sequoia India), are poised to divest in the offer for sale. This strategic move signifies the company’s commitment to navigating the public listing landscape, and the involvement of reputed financial advisors underscores a meticulous approach to this crucial step in MobiKwik’s journey.
Valuation and Financial Performance
The Mobikwik board recently approved a resolution to issue shares amounting to Rs 176 crore (pre-IPO placement) to specific investors prior to submitting the red herring prospectus to the stock exchange regulator. Notably, Mobikwik’s previous primary valuation was approximately $736 million during its last funding round. However, the company’s valuation soared to $1 billion in a secondary round (ESOP sale) conducted in October 2021. Despite maintaining a steady revenue from operations at Rs 539.46 crore in FY23, Mobikwik showcased financial resilience by significantly reducing losses, which plummeted by 34.53% to Rs 83.8 crore in the last fiscal year. This financial maneuvering underscores Mobikwik’s strategic approach to fortifying its position in the market, paving the way for future growth and stability.
MobiKwik, a prominent digital payment solutions provider, is preparing for its second IPO attempt, aiming to secure Rs 880 crore through equity shares issuance. Encouraged by recent market successes, the company has regained confidence, with its board approving a special resolution for the IPO. MobiKwik is in the process of finalizing banking partners and has engaged reputed financial advisors for the public listing. The company also approved a resolution for a pre-IPO share placement. Despite a reduction in losses and steady revenue, MobiKwik’s strategic financial maneuvering showcases its commitment to fortifying market position and ensuring future growth and stability.
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