MobiKwik, a prominent player in the digital wallet and payments domain, has initiated the process for its initial public offering (IPO) by filing its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on July 12. The company aims to raise ₹1,900 crore through this IPO.
Fundraising Plans
Of the total amount, MobiKwik intends to raise ₹1,500 crore through a primary issue, while the remaining ₹400 crore will be garnered through a secondary issue. The secondary issue will facilitate partial exits for several existing stakeholders, including American Express, Bajaj Finance, Cisco System, Sequoia Capital, and Treeline Asia. Additionally, MobiKwik’s founders, Bipin Preet Singh and Upasana Taku, will also divest a portion of their shareholding in the IPO.
Book Runners and Valuation
The IPO will be managed by renowned book runners such as ICICI Securities, BNP Paribas, Credit Suisse, and Jefferies. Notably, MobiKwik is speculated to target a valuation of $1 billion, according to a report by Bloomberg.
Conclusion
MobiKwik’s decision to enter the IPO arena underscores its growth trajectory and ambition to expand its presence in the digital payments landscape. With significant fundraising goals and the backing of reputable book runners, MobiKwik’s IPO could mark a significant milestone in its journey as a leading player in India’s fintech sector.
Clara Cardoso
Mariana Oliveira
