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Indian payments firm MobiKwik files to raise $84M in IPO

Illustration of a handshake between two people in front of a background designed with a graphic Indian flag pattern, surrounded by an Indian rupee border.

Illustration: Annelise Capossela/Axios

The parent company of Indian payments firm MobiKwik has filed to raise ₹700 crore (~$84.2m) through a local IPO.

Why it matters: After several years of volatile markets, the Indian IPO window appears open once again.

Details: One MobiKwik Systems Ltd. refiled its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), offering fresh equity shares with no secondary component.

  • MobiKwik plans to use ₹250 crore (~$30m) to fund growth in its financial services business, ₹135 crore (~$16m) for its payment services business, ₹135 crore (~$16m) to invest in and AI products and technology, and ₹70 crore ($8.4m) for capex in its payment devices business and general corporate purposes.
  • The company intends to raise a pre-IPO placement of up to ₹140 crore ($16.8m) through its book-running lead managers (BRLMs), which could reduce the size of the public offering.

By the numbers: MobiKwik is one of the largest mobile wallets and BNPL providers in India, with more than 146 million registered users and 3.8 million merchant partners.

  • For its most recent fiscal year, the company's revenue increased to ₹539.47 crore ($64.8m), up from ₹526.56 crore ($63.3m) in the prior year.
  • Its loss narrowed 34.6% year over year, from ₹128.16 crore ($15.4m) in fiscal 2022 to ₹83.81 ($10.1m) crore in fiscal 2023.
  • However, it swung to a ₹9.48 crore ($1.1m) profit in the first six months of fiscal 2024.

Flashback: This is MobiKwik's second try at an IPO after filing with SEBI in July 2021 to raise ₹1,900 crore (~$229m) through a mix of new and secondary shares.

  • It ultimately abandoned that attempt due to volatile market conditions.

State of play: MobiKwik follows Indian startups Ola Electric and FirstCry in filing for IPO in recent months.

  • India ended 2023 with 23 IPOs in the final quarter, a meaningful percentage of the 57 public listings in the country for the year.

Of note: SBI Capital Markets Ltd. and DAM Capital Advisors Ltd. are its BRLMs, with Link Intime India Private Ltd. serving as the offer registrar.

  • Shares will be listed on the BSE and NSE.
  • Investors in MobiKwik include Peak XV, American Express, and Abu Dhabi Investment Authority.
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