Mobikwik IPO: Indian Fintech Firm Plans $255 Million Raise

MobiKwik Announces Plans for $255 Million IPO

MobiKwik, a mobile wallet provider headquartered in Gurgaon, India, is preparing to launch an initial public offering (IPO) with the goal of raising up to $255 million.

This move positions the company as the newest Indian startup to seek funding through the public markets.

Details of the Proposed IPO

The company, established 12 years ago, has already secured approximately $250 million in funding from investors including Sequoia Capital India and Abu Dhabi Investment Authority.

According to filings submitted to the market regulator on Monday, the IPO will involve the issuance of new shares valued at up to $201 million, alongside the sale of existing equity shares worth up to $54 million.

Valuation and Business Model

Sources familiar with the matter indicate that MobiKwik is aiming for a valuation of approximately $1 billion in this IPO.

The firm facilitates digital payments for its users and also offers supplementary financial products.

These include small insurance packages, loan options, and American Express-branded credit cards.

User Base and Financial Performance

MobiKwik has cultivated a substantial user base, exceeding 101 million registered users.

The platform also boasts a network of over 3.44 million merchant partners, spanning both online and offline channels, as well as billing services.

The company reported total income of around $40.5 million for the financial year ending in March 2021.

While this figure represents an 18% decrease, the company’s losses also experienced a reduction of 12%, shrinking to $14.9 million during the same period.