Fintech firm Mobikwik refiles draft papers with Sebi to raise Rs 700 cr

Unicorn fintech firm One MobiKwik Systems Ltd has filed its preliminary papers with markets regulator Sebi to raise up to Rs 700 crore through an initial public offering.

This is the second attempt by the Gurugram-based firm for the public issue following its first attempt in July 2021. Earlier, the company shelved its IPO plans and withdrew its draft papers due to unfavourable market conditions.

The public issue is entirely a fresh issue of equity shares worth up to Rs 700 crore, as per the draft red herring prospectus (DRHP) filed on Thursday.

The company may consider a pre-IPO placement of its securities worth up to Rs 140 crore. If such a placement is undertaken, the size of the fresh issue will be reduced.

The proceeds from the fresh issue to the tune of Rs 250 crore will be used for funding growth in the financial services business and Rs 135 crore for the payment services business.

Further, Rs 135 crore for investment in data, machine learning and artificial intelligence, and product and technology, Rs 70.28 crore for capital expenditure for the payment devices business, and general corporate purposes.

MobiKwik, the company's flagship application, provides consumers access to various payment options and financial products in digital credit, investments, and insurance. It was founded by Bipin Preet Singh and Upasana Taku.

For the six months ended September 30, 2023, One Mobikwik Systems' revenue from operations stood at Rs 381.09 crore and profit after tax was Rs 9.48 crore.

SBI Capital Markets Ltd and DAM Capital Advisors Ltd are the book-running lead managers, and Link Intime India Pvt Ltd is the registrar for the IPO.

The company's equity shares are proposed to be listed on the BSE and NSE.