Gurugram-based fintech firm MobiKwik has achieved a significant milestone by receiving final approval from the Securities and Exchange Board of India (SEBI) to raise ₹700 crore through an initial public offering (IPO).
This offering will consist entirely of a fresh issue of equity shares, with a face value of ₹2 per share and no offer-for-sale component.
Company Overview
Founded by Bipin Preet Singh and Upasana Taku, MobiKwik has established itself as a key player in the Indian fintech landscape.
The company provides a comprehensive suite of payments and financial services aimed at businesses and merchants.
Notably, it operates a B2B payment gateway through its subsidiary Zaakpay, which has received approval from the Reserve Bank of India (RBI) for its Payment Aggregator (PA) business.
Financial Highlights
MobiKwik turned profitable in the fiscal year 2024, reporting a net profit of ₹14.08 crore, a remarkable turnaround from a loss of ₹83.8 crore in FY23.
The company also saw impressive growth in its revenue from operations, which surged by 58.7% year-on-year to reach ₹890.32 crore.
Utilization of IPO Proceeds
The funds raised from the IPO will be allocated strategically to fuel MobiKwik’s growth:
- ₹250 crore for expanding its financial services division
- ₹135 crore for growth in payment services, including enhancing the payment gateway and user experience for merchants and consumers
- ₹135 crore for investments in data analytics, artificial intelligence (AI), and machine learning (ML) technologies, crucial for improving operational efficiency and customer personalization
- ₹70.28 crore for capital expenditure related to its payment devices business, ensuring innovative solutions like point-of-sale devices and cash advance products
- The remaining funds will be used for general corporate purposes, which may include strengthening the company’s infrastructure and supporting ongoing operations
Additionally, MobiKwik may explore raising an extra ₹140 crore through pre-IPO placements or other securities issuance, further enhancing its financial position and growth capabilities.
Differentiation in the Market
MobiKwik distinguishes itself from other fintech companies by offering a robust suite of financial services tailored for both consumers and businesses.
Its focus on integrating advanced technologies like AI and ML enhances its service offerings, setting it apart in a competitive landscape.
Future Prospects
With its recent profitability and strategic plans for growth, MobiKwik is well-positioned for future success.
The IPO, managed by SBI Capital Markets and DAM Capital Advisors, with Link Intime India Private Limited serving as the registrar, is set to list the equity shares on both the BSE and NSE.
As MobiKwik continues to innovate and expand its services, it aims to solidify its position as a leading fintech firm in India, catering to the evolving needs of its customers and driving financial inclusion in the country.
