Recently, many companies have launched their Initial Public Offerings (IPOs).
If you are interested in investing in IPOs, there is news for you. Mobikwik, a digital payment service provider, is set to launch its IPO soon.
This IPO has received approval from SEBI and is expected to raise Rs 700 crore. The face value of the company’s shares is set at Rs 2 each.
Details of the IPO
According to the company’s draft papers, Mobikwik will issue entirely new shares in this IPO.
Out of the Rs 700 crore raised, the company plans to allocate Rs 250 crore for its financial services business and Rs 135 crore to expand its payment service offerings.
Additionally, some funds will be used for payment devices and artificial intelligence (AI).
Mobikwik is a leading digital payment platform with over 14 crore users. The Draft Red Herring Prospectus (DRHP) for this IPO was submitted on January 4 of this year.
Notably, the company will not issue any shares for sale, meaning all the funds raised will go directly to Mobikwik.
The company has notable investors, including the Abu Dhabi Investment Authority, Bajaj Finance, Sequoia Capital, and Peak XV Partners.
Financial Performance of Mobikwik
Mobikwik, which started in 2009, competes with other major digital payment services like Paytm, Google Pay, and PhonePe. The company was founded by Bipin Preet Singh
and Upasana Taku. In the financial year 2023, Mobikwik reported a loss of Rs 83.8 crore, but in the financial year 2024, it turned a profit of Rs 14.1 crore.
