Mobikwik, a digital payments company backed by Sequoia Capital and Bajaj Finance, filed a drafts red herring prospectus (DRHP) with SEBI on Monday for an IPO for up to Rs 1,900 crore.
Mobikwik, a digital payment service that includes a mobile wallet, was founded in 2009 by Singh and Taku. There's also a buy-now-pay-later option available. Mobikwik has raised more than $165 million so far.
According to the prospectus posted on the website of one of its investment bankers, this comprises a fresh issue of shares worth up to Rs 1,500 crore and an offer for sale for Rs 400 crore. Before the public offering, the company may pursue a pre-IPO placement of up to Rs 400 crore. The company hopes to collect up to Rs 1,900 crore through the IPO.
Merchant bankers ICICI Securities, BNP Paribas, IIFL Securities, Jefferies India, and Credit Suisse Securities (India) Private Limited have been appointed to advise the firm on its initial public offering.
A number of existing investors will sell a portion of their ownership as part of the offering. This applies to sales of up to:
- Bipin Preet Singh, the company's co-founder, will sell Rs 113 crore.
- Upasana Taku, co-founder, will sell Rs 78.8 crore.
- Sequoia Capital is worth Rs 74.12.
- Bajaj Finance Ltd will sell Rs 68.9 crore.
The news comes as MobiKwik's rival fintech decacorn Paytm prepares to file a DRHP for its IPO on July 12th. Zomato, a restaurant aggregator, revealed earlier this week that it will hold a public offering on July 14-16, with the online food delivery company hoping to raise up to INR 9,375 crore.
In January 2021, a database of 110 million (11 million) Mobikwik users was leaked on the dark web. The 8.2 TB database contained not just personal and financial information about individual clients, but also information about merchants who had taken out loans from the bank.