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Esop Effect: Digital payment service MobiKwik becomes a unicorn ahead of IPO

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The Gurugram-based MobiKwik has received SEBI's go-ahead to roll out its IPO, worth Rs 1,900 crore. The public offering is expected to hit the market before Diwali.

Esop Effect: Digital payment service MobiKwik becomes a unicorn ahead of IPO
Fintech platform MobiKwik's valuation has crossed the $1 billion mark, making it the 33rd Indian start-up to become a unicorn this year.
The development comes after MobiKwik’s staff exercised their employee stock ownership plan (Esop) in a secondary sale. The sale was led by Mathew Cyriac, former Blackstone India head. According to media reports, Cyriac bought shares at almost twice the price he had invested in the start-up earlier this year.
Earlier this week, the Gurugram-based start-up received SEBI's go-ahead to roll out Rs 1,900 crore initial public offering (IPO). In its draft red herring prospectus (DRHP), MobiKwik had revealed that it reserved 4.5 million equity shares for Esop.
The company had last month said its IPO, including an offer for sale of up to Rs 400 crore and Rs 1,500-crore primary issue of shares, would create seven billionaire employees. The platform is eyeing an IPO valuation in the range of $1.5-1.7 billion. Its public offering is expected to hit the market before Diwali.
MobiKwik had filed the draft paper in July, just days after its rival Paytm rolled out its IPO, worth Rs 16,600 crore.
Weeks before filing the DRHP for an IPO, the fintech platform had raised Rs 149 crore ($20.4 million) in its Series G round from Abu Dhabi Investment Authority (ADIA).
Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik is backed by Sequoia Capital, Teeline Asia, and Cisco Systems. In fact, Sequoia Capital, the second-largest shareholder in the company, will get about Rs 95 crore from the sale of shares.
Currently, Mobikwik has a user base of 101 million. However, the platform posted a loss of Rs 111 crore in the financial year ended March 31, 2021. Its total income was also down to Rs 302 crore, a drop of 18 per cent from the previous fiscal.
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