Since the beginning of this year, the IPO market has experienced substantial growth, and large companies have launched IPOs one after another. Now, another company will be added to the list, one that offers digital payment services. We are talking about Gurgaon-based company Mobikwik, to which market regulator SEBI has given a green signal to launch an IPO. Mobikwik IPO size will be Rs 700 crore.
Application has been submitted at the beginning of the year
Mobikwik is a digital payments platform with a user base of over 140 million rupees. The company had previously submitted an IPO application to market regulators but failed to receive approval. Thereafter, in early 2024, on January 4, Mobikwik once again submitted a draft red hearing prospectus, or DRHP, to SEBI, and this application to raise Rs 7 billion from this market has now been approved by SEBI.
Where will the company spend the money?
Mobikwik will raise Rs 7 billion from the market through the IPO. Of the funds raised, 2.5 billion rupees will be spent on the financial services business, while 1.35 billion rupees is planned for the payment services business, the report said, citing documents. Apart from this, the remaining amount will be used for artificial intelligence and payment devices.
Mobikwik will issue new shares
If reports are true, Mobikwik will only offer new shares for bidding under the initial public offering, or IPO. No shares will be sold by way of an offer for sale. If you understand it from another perspective, then all the money the company makes through the IPO belongs to the company itself. If we talk about the company’s investors, in addition to the Abu Dhabi Investment Authority and Sequoia Capital, they also include Bajaj Finance and Peak XV Partners.
Started business in 2009
MobiKwik was founded in 2009 by Bipin Preet Singh and Upasana Taku. Today, the company’s market is quite large and MobiKwik is competing with other players in the space such as Paytm, PhonePe and Google Pay. Let us tell you that Upasana used to work in the US and she quit her job to launch this startup.
