Online payments and lending startup Mobikwik has got the SEBI consent for its first public issue, sources stated on October 8. As per the references, Mobikwik is expected to drift the issue before Diwali. This would be the very first online payment corporation to list in India. Mobikwik did not comment on this.
MobiKwik is an interesting IPO nominee. It is not a giant unicorn-like Paytm, Zomato or others looking to get listed soon. Whether it is a market leader is also unclear; Still, the business says in its draft documents that the quickly growing amount of digital payments, online shopping and internet usage, in common, will stand it in good stead.
MobiKwik had on July 12 listed its draft documents to raise Rs 1,900 crore via a public offering, the freshest among a slew of internet companies desiring to list on stock exchanges. Also the firm promoted Chandan Joshi as co-founder in build-up to IPO. About Rs 1,500 crore will be primary share sales, while up to Rs 400 crore will be secondary share sales where current investors can sell their stake.
Established in 2009 by husband-wife couple Bipin Preet Singh and Upasana Taku, One MobiKwik Systems Limited was last estimated at $700 million when it raised $20 million last month from Abu Dhabi Investment Authority (ADIA).
For the fiscal year ended March 31, 2021, MobiKwik’s total revenue was down by 18 percent to Rs 302 crore while its losses rose 12 percent to Rs 111 crore.
According to a new report by Credit Suisse, MobiKwik has emerged from a wallet player to offer a broader stack of financial products to its 120 million consumers and 3 million retailers. It has joined UPI, 200+ billers, and also cross-sells loans, insurance, and investment products.
It also allows 15-30 days Buy Now, Pay Later (BNPL) to current customers on the back of their payments and transaction data. Along with credit, the platform also gives insurance and investments in partnership like mutual fund investments, digital gold, etc.
Apart from payments and recharges, Mobikwik cross-sells other commercial products to monetise. It started app-based lending in 2018 in connection with NBFCs like Bajaj Fin, Aditya Birla Cap and DMI finance by leveraging data of 120 million users.
MobiKwik’s IPO process is being handled by ICICI Securities, BNP Paribas, Credit Suisse, IIFL Securities and Jeffries.
Its listing plans also come at a time when larger competitor Paytm is also preparing to file its documents to raise $3 billion at a $30 billion valuation- in what could be India’s highest IPO ever.