Mobikwik IPO: Online payments platform Mobikwik gets SEBI approval to raise ₹700 crore

Gurugram based One Mobikwik Systems Limited has received final approval from the Securities and Exchange Board of India (SEBI) to raise ₹700 crore through an initial public offering (IPO).

The company had refiled its IPO documents with SEBI on January 4, 2024.

The market regulator has approved the IPO applications of Mobikwik and Waaree Energies. Both the companies received observation letters on September 19.

As per SEBI norms, the issuance of observation letter means the company can launch its IPO within one year from the receipt of the letter.

Mobikwik IPO will comprise an entirely fresh issue of equity shares of a face value of ₹2 each and there will be no offer-for-sale (OFS) component. The IPO is aimed at strengthening the company’s growth and operational capabilities.

Mobikwik Limited shares will be listed both on the BSE and NSE.

SBI Capital Markets and DAM Capital Advisors are serving as the merchant bankers for Mobikwik's IPO.

The company’s founder Bipin Preet Singh and Upasana Taku refiled its draft papers with SEBI in January 2024 significantly reducing the IPO size from ₹1,900 crore to ₹700 crore.

Additionally, through its subsidiary Zaakpay, Mobikwik manages a B2B payment gateway tailored for e-commerce businesses.

The company has also received RBI approval for its Payment Aggregator (PA) operations further expanding its capabilities in the digital payments space.

Mobikwik IPO objective

Mobikwik plans to allocate ₹250 crore from the IPO proceeds to expand its financial services arm while ₹135 crore will be earmarked to enhance its payment services.

Another ₹135 crore will be invested in data, machine learning and AI innovations. The remaining ₹70.28 crore will be directed towards capital expenditure in its payment devices business and general corporate purposes.

Mobikwik turned profitable in FY24 reporting a net profit of ₹14.1 crore in a notable turnaround from a loss of ₹83.8 crore in FY23. Revenue from operations also increased significantly, rising to ₹875 crore in FY24 from ₹540 crore in FY23.