Mobikwik looking to raise $100 million after delay of planned IPO

In an interview in Mumbai, co-founder Upasana Taku said the cash will be used for marketing, hiring employees, and making acquisitions by the Gurugram-based fintech startup, which emerged profitable for the first time in the quarter ending Dec. 31.

Advertisement

After deferring an initial public offering, One Mobikwik Systems Ltd. is in talks with investors to raise up to $100 million in equity. To fund corporate expansion, according to a company founder.

In an interview in Mumbai, Mobikwik’s co-founder Upasana Taku said the cash will be used for marketing, hiring employees. And making acquisitions by the Gurugram-based fintech startup. Which emerged profitable for the first time in the quarter ending Dec. 31. She stated that Mobikwik intends to proceed with the IPO at a later date.

Following a sell-off in the shares of larger rival Paytm. Which went public in November, the company postponed its planned IPO. According to statistics from investment platforms that allow trading in private companies, Mobikwik’s unlisted shares bore the brunt of the tech sector’s downturn.

The company Mobikwik, which counts American Express Co. And Sequoia Capital among its investors, is one of India’s top providers of buy now, pay later services. Mobikwik has over 100 million registered users and is looking to significantly expand its business. Mobikwik was valued at over $700 million when it raised financing from the Abu Dhabi Investment Authority last year, but no decision has been made on the valuation for the latest funding round, according to Taku.