Mobikwik seeks valuation of around $250 million, cuts issue size
Subscribe to enjoy similar stories. MobiKwik’s public offer will open for subscription on Wednesday with a price band of ₹265-279 per equity share, valuing the company at about ₹2,165 crore, a sharp discount to the valuation the company sought in its last attempt at the public listing back in 2021of ₹7,600 crore. The company, headed by husband-and-wife duo Bipin Preet Singh and Upasana Taku, has reduced its fundraising target to ₹572 crore, following the Securities and Exchange Board of India’s (Sebi’s) approval in September to raise ₹700 crore.
“The markets were in an amazing bull run right up to August or September. If we had got the Sebi approval earlier, we might have done something different then," Taku told Mint on the sidelines of its initial public offering (IPO) press conference in Mumbai on Friday. Taku added that along with volatility in the market, changes in the fintech landscape, includingReserve Bank of India (RBI) sanctions against several companies in the sector prompted the company to make the adjustment in the issue size.
Founded in 2009, MobiKwik is a mobile wallet and financial services company. Through its payments business that makes up about 36% of revenue, it allows retail customers and merchants to send and receive money and pay various utility bills. It also offers digital credit, investments and insurance products such as MobiKwik ZIP—its buy now pay later (BNPL) credit, and ZIP EMI that provides personal loans, merchant cash advances, wealth management and insurance distribution.
This segment made up about 64% of MobiKwik’s revenue as of FY24. Of the IPO proceeds, the company is allocating ₹150 crore towards financial services, and ₹135 crore in the payments services business. The company has
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