Gurugram-based One Mobikwik Systems Gets SEBI Nod for Rs 700 Cr IPO

Gurugram-based One Mobikwik Systems Limited has received final acknowledgement from the capital markets regulator, Securities and Exchange Board of India (SEBI), to raise Rs 700 crore through an initial public offering (IPO).

On January 4, 2024, the company submitted its IPO papers afresh with Sebi. With a face value of Rs 2, the IPO is an entirely fresh equity share offering without a component of an offer-for-sale (OFS) segment. In consultation with the book-running lead managers, the company may decide to proceed with a "pre-IPO placement" of additional specified securities, which might involve any of the following methods: rights issue, preferential allotment, private placement, or any other manner that totals Rs 140 crore. Once this placement is finished, the size of the fresh issue will be less.

A total of Rs 250 crore from the fresh issue's proceeds will go towards funding the expansion of the financial services arm of the company, Rs 135 crore towards funding the expansion of the payment services business, Rs 135 crore towards investments in data, machine learning, artificial intelligence, and other products and technology, Rs 70.28 crore towards capital expenditures for the payment devices business, and general corporate purposes.

By September 30, 2023, the firm had 146.94 million registered users and had made it possible for 3.81 million retailers to accept payments both online and offline. Every year, its Payment GMV has increased by 32.33%, but from Fiscal 2021 to Fiscal 2023, MobiKwik ZIP GMV (Disbursements) increased by 354.86%. The book-running lead managers for the IPO are SBI Capital Markets Limited and DAM Capital Advisors Limited, while Link Intime India Private Limited serves as the offer registrar. The BSE and NSE have been proposed as the listing platforms for the equity shares of Mobikwik Systems IPO.

With a wide range of financial services and payment options, including online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine, and Merchant Cash Advance, it serves enterprises and merchants. One Mobikwik Systems also runs a B2B payment gateway for e-commerce companies through its subsidiary Zaakpay, and it has RBI authorisation for its Payment Aggregator (PA) business.