BENGALURU: Digital payments firm Mobikwik has filed Draft Red Herring Prospectus with the Securities Exchange Board of India(SEBI) to raise Rs 1,900 crore ($255 million) at a $1 billion valuation. This will also include an offer for sale of up to Rs 400 crore and Rs 1,500 crore primary issue, as per the company filings.
The shareholders who will participate in the OFS include American Express, Bajaj Finance, co-founders Bipin Preet Singh, Upasana Taku, Sequoia Capital, Teeline Asia and Cisco Systems. Mobikwik was valued at $700 million in the last financing round when it raised $20 million from Abu Dhabi Investment Authority.
The fintech startup joins a league of new-age companies which are preparing to list on Indian stock markets at a time when the market indices have rallied despite Covid hitting the economy hard. Mobikwik was founded almost a decade ago as a mobile wallets firm to provide a bouquet of financial services including small-ticket loans and insurance offerings. The company said in its DRHP that for the year ended March 2021 its total income was down by 18% to Rs 302 crore while its losses rose 12% to Rs 111 crore.
Mobikwik said that its user base has jumped to 101 million, whereas the platform onboarded over 3 million merchants for both online/ offline payments. The company’s buy now pays later offerings in partnership with third-party applications is targeted at acquiring customers with average credit profiles to avail low-cost capital and other financial products.