Payment Platform One MobiKwik Systems Ltd has slashed its issue size to Rs 700 crore from Rs 1,900 crore and refiled the draft papers with the Securities Exchange Board of India (Sebi) to raise funds from the public.
Earlier in July 2021, the company had filed the draft red-herring prospectus with Sebi for a Rs 1,900-crore IPO.
The issue will be a pure fresh issue. The company, with advice from lead managers, may issue securities worth Rs 140 crore through pre-IPO placement, potentially reducing the fresh issue size.
Out of the Rs 250 crore raised, Rs 135 crore will fuel financial services growth, Rs 135 crore will support data and technology investment, Rs 70.28 crore will fund payment devices' capital expenditure, and the rest will cover general corporate needs.
Co-founded by Bipin Preet Singh and Upasana Taku, leveraging their expertise in scalable technology and finance, the company aims to bolster financial inclusion in India using technology. Offering extensive payment solutions like online checkout, Kwik QR scan, MobiKwik Vibe, EDC Machine, and Merchant Cash Advance to businesses and merchants.
Its subsidiary Zaakpay runs a B2B payment gateway and holds the RBI approval for payment aggregator (PA) business. MobiKwik app, the flagship venture, offers users access to digital credit, investments, and insurance, acquiring around 18.29 million users yearly between 2021 and 2023.
As of September 30, 2023, the company had 146.94 million registered users and supports 3.81 million merchants for online and offline payments. Payment GMV increased 32.33 percent, and MobiKwik ZIP GMV surged by 354.86 percent from Fiscal 2021 to Fiscal 2023.
RedSeer report highlighted the company's cost-effective, tech-driven growth approach and efficient employee cost-to-revenue ratio in Fiscal 2023. Revenue rose to Rs 539.47 crore in Fiscal 2022–23 from Rs 526.56 crore in Fiscal 2021–22, and losses decreased by 34.60 percent to Rs 83.81 crore in Fiscal 2023.
For the six months ended September 30, 2023, revenue stood at Rs 381.09 crore, with a profit after tax of Rs 9.48 crore. SBI Capital Markets Limited and DAM Capital Advisors Limited lead the IPO.
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