Gurugram-Headquartered digital payment and lending company MobiKwik has received the nod from the Securities and Exchange Board of India to float its Rs. 1,900 crores initial public offering (IPO), sources reported on Friday, October 8. This move will make MobiKwik the first online payment company to list in India.
MobiKwik is reportedly looking to launch a public offering worth over $255 million before Diwali on November 4, which is expected to increase its valuation to cross the $1 billion mark. Sources have also reported that the company has yet to settle on a price band thus leaving room for a chance that its valuation after being listed might be significantly higher than $1 billion.
The company has not commented on the reports so far. However, at its latest round of Series G funding held in April, the online payment platform raised $ 20 million, valuing close to $700 million and was seeking a valuation of over $1 billion when it filed the draft papers for an IPO to the SEBI earlier this year in July.
As per the draft papers filed by the company, out of the $1,900 crores MobiKwik is looking to raise, about $ 1,500 crores are said to be primary share sales while close to $400 crores will be secondary share sales wherein existing investors will have the opportunity to sell their stake in the company. Current investors of Mobikwik include Sequoia Capital India, Bajaj Finance, American Express, Cisco and Abu Dhabi Investment Authority.
According to the draft red herring prospectus (DRHP), Founder duo Bipin Preet Singh and Upasana Taku who hold a combined stake of around 33.2 per cent in the company, plan to sell shares worth over Rs 191 crore in the secondary sale.
MobiKwik’s IPO procedure is being handled by ICICI securities, BPN Paribas, Credit Suisse, IIFL Securities and Jeffries, and is battling with rival online payment platform Paytm who is also in the process to file documents for its $3 billion initial public offering.