Fintech firm MobiKwik on Monday filed a draft red herring prospectus (DRHP) with the markets regulator, Securities and Exchange Board of India (Sebi), for its initial public offering (IPO). According to its DRHP, the company plans to raise Rs 1,900 crore, which includes a fresh issue of Rs 1,500 crore and an offer for sale of Rs 400 crore.
The selling shareholders include American Express Travel, Bajaj Finance, Cisco Systems and Sequoia Capital India, besides founder Bipin Preet Singh.
MobiKwik is the latest among tech majors wanting to list on stock exchanges. Food delivery start-up Zomato will launch its IPO on Wednesday.
MobiKwik, a digital payment company founded in 2009, among the larger mobile wallet and buy now, pay later (BNPL) services providers. It competes with the likes of Paytm, which is also is headed for an IPO.
ALSO READ: Paytm shareholders approve Rs 12,000 cr primary fundraise at company EGM
The firm was founded by husband-wife duo Bipin Preet Singh and Upasana Taku. According to its website, it has 101 million registered users and more than 3 million e-Commerce, physical retailers, and biller partners.
As the landscape of digital payment progressed extremely fast over the last five years, it meant newer players in the fray. MobiKwik has also entered other aspects of financial payments — consumer payments, credit, mutual funds, and payment gateway.
Once only competing with Paytm, it is now facing newer players which are more flush with funds — Google Pay, PhonePe, Groww, and Zerodha.
The company said the long-term growth strategy to scale its business included acquiring and retaining users and merchants, strengthening its platform by investing in data, products and technology, and increasing the usage of BNPL in India. The company plans to utilise the net proceeds of the fresh issue to fund organic and inorganic growth initiatives.
ICICI Securities, BNP Paribas, Credit Suisse, IIFL Securities, and Jefferies India are the managers of the issue.
So far in 2021, 25 companies have announced their listing plans worth Rs 39,301 crore, almost 50 per cent higher than the 15 companies which raised Rs 26,612 crore in the previous year.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
First Published: Mon, July 12 2021. 23:48 IST
read the full story about Digital payments start-up MobiKwik files for Rs 1,900-crore offering
#theheadlines #breakingnews #headlinenews #newstoday #latestnews #aajtak #ndtv #timesofindia #indiannews