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Gurugram-based fintech unicorn MobiKwik has filed its draft Red Herring Prospectus (DRHP) with capital markets regulator SEBI to raise Rs 700 crore in an initial public offering (IPO).
This comes days after it was reported in the media that the board of digital payments and fintech unicorn Mobikwik had passed a resolution to raise Rs 880 crore through an IPO. This will be the company’s second attempt at an IPO. The company had earlier filed a draft prospectus (DRHP) for a Rs 1,900-crore IPO with SEBI in July 2021. However, according to media reports, Mobicwik put its IPO plans on hold citing market conditions after Paytm went public with a 25% drop in its initial price and a slowdown in the economy.
Founded in 2009 by Bipin Preet Singh and Upasana Tatsu, the fintech unicorn offers digital payment solutions such as mobile wallets and pay later (BNPL) products. The company provides payment and financial services for businesses and merchants, including online checkout, Kwik QR Scan and Pay, MobiKwik Vibe (soundbox), MobiKwik EDC machines, and Merchant Cash Advance. Additionally, it operates a B2B payment gateway for e-commerce businesses through its subsidiary Zaakpay and has received RBI approval for payment aggregator business.
The issuance will be done through a book-building process, with at least 75% of the issue amount available for pro rata allocation to qualified institutional investors and no more than 15% of the issue amount available for allocation to non-institutional investors. I assume that. – Less than 10% of the issue amount may be allocated to institutional investors and individual private bidders.
The Company, in consultation with the bookrunning lead managers, will consider further issuance of certain securities, including through private placement, preferential allotment, rights issue or other means, and will issue a total of Rs. may be considered as. Once such arrangement is complete, the size of the new issue will be reduced.
As of September 30, 2023, the company claims to have accumulated 146.94 million registered users and enabled 3.81 million merchants to make online and offline payments. The company’s operating revenue for FY 2022-23 increased to Rs 539.47 crore as against Rs 526.56 crore in FY 2021-22. Net loss decreased by 34.60% from Rs 128.1 million in FY22 to Rs 83.81 million in FY2023. Operating revenue for the six months ended September 30, 2023 was Rs 381.09 billion and profit after tax was Rs 9.48 billion. .
Of the proceeds from the new issuance, 250 million rupees will be used to fund the growth of the financial services business, 135 million rupees will be used to fund the growth of the payment services business, and 135 million rupees will be used to invest in data, ML, and AI. used. 70.28 billion for capital expenditure for products and technology and payment devices business and general corporate purposes.
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