Fintech Unicorn MobiKwik Reaches SEBI, Reduces IPO Lot Size To INR 572 Cr

Over two months after receiving approval for its INR 700 crore initial public offering (IPO), fintech unicorn MobiKwik has submitted its red herring prospectus (RHP) with market regulator Securities and Exchange Board of India (SEBI).

This is the third time MobiKwik has lowered the size of its IPO.

According to the RHP, the company’s initial public offering will open on December 11 and end on December 13.

It is worth noting that MobiKwik has lowered the size of its fresh issue by approximately 18%, from INR 700 Cr to INR 572 Cr.

MobiKwik’s first offer size was INR 700 crore, according to its draft red herring prospectus (DRHP) submitted in January. It should also be highlighted that the company’s DRHP did not include an offer for sale component.

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The Delhi NCR-based company will issue equity shares with a face value of INR 2 each, reaching up to INR 572 crore.

According to the RHP, MobiKwik will use the net proceeds from the IPO to fund four primary expenses: INR 150 crore for its financial services company and INR 135 crore for its payments service business.

Aside from that, the company would invest INR 107 crore in research and development in data, machine learning, and artificial intelligence, as well as product and technology. Capital expenditure for the payment device business will be INR 70.28 crore.

Furthermore, the corporation intends to set aside funds for general corporate expenses, albeit the exact amount has not been determined.

In terms of financial performance, the IPO-bound startup became profitable in the fiscal year 2023-24 (FY24), posting a net profit of INR 14.1 Cr vs a net loss of INR 83.19 Cr in the previous fiscal year, owing to robust business growth.

MobiKwik’s operating revenue increased by 62% to INR 875 crore in the fiscal year under review, up from 539.5 crore the previous year.

This development came just weeks after Blackbuck and Swiggy went public in November.