Payment platform Mobikwik receives Sebi approval for ₹700 crore IPO

On Monday, Gurugram-based One Mobikwik Systems received approval from the Securities and Exchange Board of India (Sebi) to proceed with its initial public offering (IPO). The company had refiled its IPO documents with Sebi on January 4, 2024.

One Mobikwik Systems, which operates a two-sided payments platform connecting consumers and merchants, plans to raise ₹700 crore through the IPO. Additionally, in consultation with the book-running lead managers (BRLMs), the company may consider raising an additional ₹140 crore through a pre-IPO placement via private placement, preferential allotment, or other methods. If this placement occurs, the size of the fresh issue will be reduced accordingly.

Out of the total raised, ₹250 crore will be allocated towards expanding the company's financial services, while ₹135 crore will be used to support growth in its payment services. Additionally, ₹135 crore will be invested in data, machine learning, artificial intelligence, and product development. ₹70.28 crore will be spent on capital expenditures related to payment devices, and the remaining funds will be used for general corporate purposes.

Founded by Bipin Preet Singh and Upasana Taku, the company focuses on using technology to promote financial inclusion for underserved populations in India. It offers payments and financial services to businesses and merchants, including online checkout, Kwik QR payments, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine, and Merchant Cash Advance. Mobikwik also operates a B2B payment gateway for e-commerce businesses through its subsidiary Zaakpay and holds RBI approval for its Payment Aggregator (PA) business.

As of September 30, 2023, Mobikwik has registered 14.69 crore users and enabled 38.10 lakh merchants to process online and offline payments. The company's Payment GMV has grown by 32.33% annually, and its MobiKwik ZIP GMV (Disbursements) increased by 354.86% from FY 2021 to FY 2023.

SBI Capital Markets Limited and DAM Capital Advisors Limited are the book-running lead managers for the IPO, while Link Intime India Private Limited will handle the registry. The equity shares will be listed on both the BSE and NSE.

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