Payment service provider One MobiKwik Systems has received approval from the capital markets regulator SEBI to raise funds through an initial public offering (IPO), according to media reports. The approval comes after the company filed its draft red herring prospectus on January 4, 2024, aiming to raise Rs 700 crore via the IPO, which will consist entirely of fresh issues with no offer-for-sale component.
As per media reports, the SEBI issued observation letters on September 19, signaling that MobiKwik can launch its IPO within a year of receiving this letter. The company, co-founded by Bipin Preet Singh and Upasana Taku, is also considering a pre-IPO placement to raise an additional Rs 140 crore, which would reduce the size of the fresh issue in the IPO accordingly.
MobiKwik boasts over 156 million registered users and enabling more than 4.1 million merchants to conduct online and offline payments. The company offers a range of products, including digital credit, investments, and insurance.
Media reports indicate that the Gurugram-based platform, which competes with firms like One 97 Communications, Affirm Holdings, and PayPal on a global scale, plans to allocate Rs 250 crore of the fresh issue proceeds to its financial services business. Additionally, Rs 135 crore will be directed toward enhancing its payment services, while another Rs 135 crore will focus on investments in data, machine learning, AI, and technology development. The remaining Rs 70.3 crore will be earmarked for its payment devices business, with the balance set aside for general corporate purposes.
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