Mobikwik, the popular payment platform, has received final approval from the Securities and Exchange Board of India (SEBI) to raise Rs 700 crore through an Initial Public Offering (IPO). The Gurugram-based company refiled its IPO documents in January this year, and now it is all set to go public.

Key Details of the IPO

The IPO will consist solely of a fresh issue of equity shares, meaning there is no offer-for-sale component. Mobikwik also mentioned that it might consider additional ways of raising funds, such as private placement, preferential allotment, or rights issues. These could bring in up to Rs 140 crore as part of a pre-IPO placement. If this happens, the size of the fresh issue will be reduced.

How the Funds Will Be Used

Mobikwik has laid out a clear plan for using the money raised from the IPO. Here’s how the funds will be allocated:

• Rs 250 crore for expanding its financial services business.
• Rs 135 crore for growing its payment services.
• Rs 135 crore for investments in data, AI, ML, and technology.
• Rs 70.28 crore for capital expenditure in its payment devices business.
• The remaining amount will be used for general corporate purposes.

For more detailed insights on IPOs, you can visit TheKredible.

Mobikwik’s Offerings and Growth

Mobikwik, founded by Bipin Preet Singh and Upasana Taku, offers a range of payments and financial services to both businesses and merchants. Some of its key offerings include:

• Online checkout services.
• Kwik QR scan and pay.
• MobiKwik Vibe (Soundbox).
• MobiKwik EDC Machine.
• Merchant Cash Advance for businesses needing quick financial help.

In addition to these services, Mobikwik operates a B2B payment gateway through its subsidiary Zaakpay, which helps e-commerce businesses process payments. Zaakpay also recently received approval from the Reserve Bank of India (RBI) to operate as a Payment Aggregator (PA), which is a big win for the company.

For more on Mobikwik’s products, check Mobikwik’s offerings.

Impressive Financial Growth

Mobikwik’s financial performance has seen significant improvement in the last fiscal year. According to TheKredible, the company’s revenue from operations jumped to Rs 875 crore in FY24, up from Rs 539 crore in FY23. Even more importantly, the company turned profitable in FY24, posting a Rs 14 crore profit, compared to a Rs 84 crore loss in FY23.

The company has also reported strong growth in its Payment Gross Merchandise Value (GMV), which has been growing at an annual rate of 32.33%. Additionally, Mobikwik’s ZIP GMV (which tracks disbursements) surged by a massive 354.86% between FY21 and FY23. These figures highlight Mobikwik’s impressive rise in the digital payment landscape.

The IPO Management Team

Leading the way in managing Mobikwik’s IPO are SBI Capital Markets and DAM Capital Advisors. The registrar for the IPO is Link Intime India Private Limited, who will handle the process of managing and finalizing investor shares.

For more updates on financial services and payment platforms, visit TheKredible.

Challenges with Xtra Platform

Despite its success, Mobikwik has faced challenges with its P2P lending platform, Xtra. Following RBI’s crackdown on P2P lending platforms, users of Xtra have reported issues with withdrawals and changes in the platform’s policies. This has led to some concerns among investors, although Mobikwik is working on addressing these issues.

To stay informed on Mobikwik’s future updates and the IPO, visit Mobikwik News.

With strong growth, a clear plan for the future, and SEBI’s approval for its IPO, Mobikwik is poised for an exciting new chapter in its journey.