Digital wallet and payment gateway start-up One MobiKwik System has filed its draft red herring prospectus (DRHP) and is looking to raise Rs 1,900 crore via a public offering. According to draft documents, Rs 1,500 crore will be primary share sales, while Rs 400 crore will be secondary, where investors can sell their stake.
CNBC-TV18 had earlier reported that the company was looking to launch its IPO before September 2021.
Mobikwik was valued at $700 million after is raised $20 million in June from the Abu Dhabi Investment Authority (ADIA). In FY21, Mobikwik's total income declined by 18 percent to Rs 302 crore, while losses rose 12 percent to Rs 111 crore.
The company is likely to consider pre-IPO private placement of Rs 400 crore, which includes OFS of Rs 9.9 crore by American Express, Rs 68.9 crore by Bajaj Finance, Rs 111 crore by founder Bipin Preet Singh,
Rs 78 crore by founder Upasana Taku, Rs 11 crore by Cisco Systems, Rs 94 crore by Sequoia Capital and Rs 24 crore by Treeline Asia.
Promoters Singh and Taku plan to sell about Rs 190 crore of their stake.
The $20 million funding from the Abu Dhabi Investment Authority valued the company at $700 million (nearly Rs 5,193 crore), according to a Registrar of Companies (RoC) filing by Mobikwik. Since March 2021, it has raised over Rs 235 crore.
The company received bad press in March, after an alleged data theft, following which Reserve Bank of India (RBI) had ordered a forensic audit on the Gurugram-based company. Personal data of about 10 million customers was reportedly stolen by hackers in the breach.
Mobikwik recently added investors such as ex-Blackstone India head Mathew Cyriac, Padma awardee Sat Pal Khattar, and ex-Infosys chief investment officer V G Dheeshjith as new shareholders.
Before the pandemic, MobiKwik saw net revenues more than doubled in FY20 at Rs 379 crore. The digital payments company said in July 2020 that its net revenue had surged 134 percent to Rs 379 crore in FY20. MobiKwik, which competes against Paytm and PhonePe, had clocked a net revenue of Rs 162 crore in FY19.
Mobikwik claims 1 million daily transactions across its network, which include digital wallets and services like mobile phone top-ups and utility bill payments. Over three million merchants are on its network and serve over 107 million users.
(With inputs from agencies)