MobiKwik, an Indian financial services company, filed a draft prospectus with the local markets regulator on Friday to raise $84.2 million via an initial public offering in the home market.
MobiKwik has filed for an IPO twice. Peak XV, Abu Dhabi Investment Authority, and American Express supported the business, which planned to sell new and existing shares in 2021 to generate $250 million, but market circumstances deteriorated.
The amended prospectus states that Bipin Singh and Upasana Taku’s 15-year-old firm won’t sell any existing shares in the IPO. It announced it would raise $16 million pre-IPO.
Online financial services platform MobiKwik offers credit, investing, insurance, and digital payments. With over 146 million users and 3.8 million merchant partners, the firm has grown rapidly. MobiKwik began as a mobile wallet provider but now offers “buy-now-pay-later” credit, personal loans, merchant cash advances, wealth management, and insurance distribution.
Fiscal 2023 Zip buy-now-pay-later credit disbursals were $490 million, up 21x from two years previous. MobiKwik’s payments and credit transaction value increased from $1.78 billion in fiscal 2021 to $3.15 billion in fiscal 2023. MobiKwik needs money to cross-sell financial products using its user base and merchant network.
The IPO prospectus listed SBI Capital and DAM Capital as the main book-running managers. After three years of losses, MobiKwik became profitable in the six months ending September 30, 2023. The business reported a $1.1 million profit on $29.3 million in sales for those six months in its prospectus.
MobiKwik is the latest Indian company seeking an IPO this year. Last month, losing companies Ola Electric and FirstCry released their draft IPO prospectuses.
