Mumbai : One MobiKwik Systems Limited, a platform business with a two-sided payments network comprising consumers and merchants, is coming out with its maiden Initial Public Offering (IPO) priced between Rs 265 to Rs 279 – aggregating to Rs 572 crores.
The IPO will open on December 11 and close on December 13, 2024.
The proceeds from its fresh issuance will be utilized to the extent of Rs 150 crore for funding organic growth in its financial services business: Rs 135 crore for funding organic growth in its payment services business; Rs 107 crore for Research and Development (“R&D”) investment in data, ML and AI and product and technology; Rs 70.28 crore for capital expenditure for its payment devices business; and general corporate purposes.
One MobiKwik Systems, founded by Bipin Preet Singh (Co-Founder, MD and CEO) and Upasana Taku (Co-Founder and CFO), focuses primarily on key businesses consisting of payment services and financial services.
Singh said that as of June 30, 2024, the platform has acquired 161.03 million registered users and enabled 4.26 million merchants to transact both online and offline.
By continuously adding new offerings to its digital credit, investments, and insurance verticals, MobiKwik enhances the platform’s value for consumers, aiming to create a comprehensive and profitable ecosystem, he said, adding that this strategy contributed to a profit of Rs 14.08 crore for the fiscal year ending March 31, 2024.
Upasana Taku said that the company’s Payment GMV has grown at an annual rate of 45.88%, and its MobiKwik ZIP GMV (Disbursements) achieved a remarkable annual growth rate of 112.16% between Fiscal 2022 and Fiscal 2024.
As of June 2024, MobiKwik has established a broad footprint across 99% of India’s pin codes and has 161.03 million registered users, including 70.88 million KYC-completed users, besides also a robust platform to spend GMV of Rs 28,578.25 crore.
The company has facilitated credit disbursals worth Rs 2,346.71 crore year-to-date, with 34.28 million pre-approved digital credit users and 7.27 million active digital credit users.
Additionally, MobiKwik has secured investments totalling Rs 6,692.85 crore as an Authentication User Agency (AUA) and achieved a competitive customer acquisition cost (CAC) of just Rs 33.53.
SBI Capital Markets Limited, and DAM Capital Advisors Limited are the book-running lead managers, and Link Intime India Private Limited is the registrar of the issue.
