Gurugram-based fintech firm MobiKwik has reduced the size of its fresh issue to Rs 572 crore in its latest red herring prospectus, from the earlier Rs 700 crore, and set a price band of Rs 265 to Rs 279 per share, with a minimum lot size of 53 shares.
Through this IPO, the company will likely be valued at around $250 million, which is sharp drop of its 2021 valuation of $924 million, as per Tracxn data.
Explaining the rationale behind reducing the size of the IPO, Bipin Preet Singh, founder and CEO of the company, said the company no longer requires the same level of capital it once did.
“When we initially planned the fundraise, the market was different,” Singh said on Friday. “At that time, we were focused on growth at all costs. But today, the company has become profitable, and we don’t need as much cash. We don’t need to dilute so much anymore”.
MobiKwik IPO is set to open for three days on December 11, with anchor bidding on December 10, and the listing is likely to be on December 18. There is no offer-for-sale component in this issue.
In January, when the company had filed draft papers for the second time to go public, it was looking to raise Rs 700 crore. The first time it tried to go public was in 2021, when it was looking to Rs 1,900 crore but shelved the plans due to weak market conditions. Later in December that year, it raised $14 million in a Series H round.
MobiKwik plans to use majority of the proceeds from the IPO to fund organic growth in its merchant-focused financial services business and its consumer-focused payments business and also to invest in AI/ML initiatives.
In the last financial year, the company has been able to scale its overall revenue by 62% to Rs 875 crore, while turning profitable on a full-year basis. The growth largely came from its financial services segment, whose revenue nearly doubled year-on-year, as it increased distribution of loan products to users in its payments services business.
MobiKwik has two broad operational segments- its consumer payments business where it offers wallets, UPI, utility bill payments, and money transfer and its financial services business, which largely involves credit distribution to merchants and individuals and contributes 64% of overall revenue. It has two main digital credit products – MobiKwik ZIP which provides buy-now-pay-later loans for 30 days and ZIP EMI that offers personal loans for 3-24 months.
In the three months ended June, the company made losses of Rs 6 crore on a revenue of Rs 342.3 crore. As of June end, the company had 161 million registered users on its platform of which 60.55 million were active users and about 4.26 million were merchants.
Source Link: MSN