Gurugram-based One MobiKwik Systems Limited, a platform business with a two-sided payments network, consisting of consumers and merchants, has filed its Draft Red Herring Prospectus (DRHP) with capital market regulator Sebi to raise Rs 700 crore for its initial public offering (IPO).
The IPO is with a face value of Rs 2 is entirely a fresh issue of equity shares with no offer for sale component.
The Issue is being made through the book-building process, wherein not less than 75% of the issue shall be available for allocation on a proportionate basis to qualified institutional buyers, not more than 15% of the issue shall be available for allocation to non-institutional investors, and not more than 10% of the issue shall be available for allocation to retail individual bidders.
The company, in consultation with the book-running lead managers, may consider a further issue of specified securities including private placement, preferential allotment, rights issue, or any other method aggregating to Rs 140 crore as “Pre-IPO placement”. If such placement is completed, the fresh issue size will be reduced.
The proceeds from the fresh issue, to the extent of Rs 250 crore will be used for funding growth in the financial services business, Rs 135 crore for funding growth in the payment services business, Rs 135 crore for investment in data, ML and AI and product and technology, Rs 70.28 crore for Capital expenditure for the payment devices business, and general corporate purposes.
Established by Bipin Preet Singh and Upasana Taku, leveraging their prior experience in developing scalable technology and financial products. The company’s primary goal is to utilize technology to enhance financial inclusion for underserved populations in India. It caters to businesses and merchants with extensive payments and financial services such as online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine, and Merchant Cash Advance.
Additionally, through its subsidiary Zaakpay, it operates a B2B payment gateway for e-commerce businesses and has received RBI approval for its Payment Aggregator (PA) business.
MobiKwik, the company’s flagship application, provides consumers access to various payment options and financial products in digital credit, investments, and insurance has acquired approximately 18.29 million new users every year, between Fiscal 2021 and September 30, 2023.
As of September 30, 2023, the company has amassed 146.94 million registered users and enabled 3.81 million merchants to conduct online and offline payments. Its Payment GMV has grown annually by 32.33%, while MobiKwik ZIP GMV (Disbursements) surged by 354.86% from Fiscal 2021 to Fiscal 2023.
As per the RedSeer report quoted in the DRHP, the company’s commitment to growth through cost-effective, technology-driven innovations is evident in its array of scaled products and its ability to maintain one of the lowest employee cost-to-revenue ratios among digital financial service platforms in Fiscal 2023
For fiscal 2022–23, the company’s revenue from operations has increased to Rs 539.47 crore against Rs 526.56 crore for fiscal 2021–22. Loss for the year decreased by 34.60% from Rs 128.16 crore in fiscal 2022 to Rs 83.81 crore in fiscal 2023.
For the six months ended September 30, 2023, revenue from operations stood at Rs 381.09 crore and profit after tax stood at Rs 9.48 crore.
SBI Capital Markets Limited and DAM Capital Advisors Limited are the book-running lead manager for the IPO, and Link Intime India Private Limited is the registrar of the offer. The equity shares are proposed to be listed on the BSE and NSE.