Digital wallet and payments startup One MobiKwik System Pvt is mulling an initial public offering (IPO) before September which could raise between $200 million and $250 million, Bloomberg has reported.
The Gurgaon-based payments startup is looking to file for the draft IPO prospectus by May 2021 that may value the firm at more than $1 billion. Also, the firm is willing to hold a pre-IPO funding round, which may give it a valuation of about $700 million.
The deliberations for IPO are under process and the timing of fundraising may change.
Mobikwik claims a million transactions on a daily basis across its offerings, which include digital wallets and services such as mobile phone top-ups and utility bill payments. The firm says its network has more than 3 million merchants and serves in excess of 107 million users. Mobikwik counts Sequoia Capital and Bajaj Finance Ltd among its backers.According to a PwC report published in December 2020, India's digital payments market could reach Rs 163 trillion ($2.3 trillion) in 2022-2023. With Facebook Inc’s WhatsApp winning permission in November to operate locally, competition among the digital payments players like Google Pay, Walmart Inc’s PhonePe and Paytm has increased.