Mobikwik files for ₹700 cr IPO

livemint.com:

₹700 crore in an initial public offering (IPO). Mobikwik is also aiming to raise ₹140 crore in a pre-IPO placement, which if successful will reduce the issue size appropriately. SBI Caps and DAM Capital are managing the issue.

This is the fintech company’s second attempt at the bourses with a reduced offer size. This is also less than what the company initially planned for. Earlier this week, the company obtained a board resolution to raise ₹880 crore worth of fresh issue of equity shares through IPO.

The company had first attempted to raise ₹1,900 crore in November 2021, but decided to withdraw because of poor investor sentiment. Unlike the first time, the company has dropped its offer for sale (OFS) component with no secondary sale of shares in this issue. The company plans to use the primary proceeds to fund its business.

The objects of the issue include ₹250 crore towards the funding of financial services business, with another ₹135 crore earmarked towards the payments business. It plans to use ₹135 crore towards “Investment in data, ML and AI and product and technology" and will use the remaining ₹70 crore for capital expenditure and other expenses. “Our management will also have the discretion over the specific activities that will be funded towards certain Objects.

For instance, we intend to utilize ₹100 crore from the Net Proceeds towards acquisition of new consumers and merchants on our platform," the draft filing said. Mobikwik said that it reported ₹243.9 crore in revenue for the first six months of FY24, of which 64% was revenue from its financial services operations. The company reported ₹285 crore in revenue in FY23, up from ₹97.6 crore in FY22.