Digital payments startup Mobikwik<\/a> on Monday filed a Draft Red Herring Prospectus (DRHP) with capital markets regulator, the Securities and Exchange Board of India, to raise Rs 1,900 crore ($255 million) through an Initial Public Offering<\/a>. The DRHP, which ET has seen, showed that about Rs 1,500 crore would be raised through a primary share sale, while the remaining will be a secondary transaction where existing investors will sell stakes.
The Gurugram-based startup, which was valued at $700 million in its previous equity funding round in April when it raised $20 million (Rs 150 crore), is eyeing a valuation of $1 billion (Rs 7,459 crore) at its public market listing, sources aware of the matter said.
The 12-year-old startup joins a growing list of consumer internet firms including Zomato, Paytm, Nykaa and PolicyBazaar<\/a> that are eyeing stock exchange debuts this year.
The firm, founded in 2009 by Bipin Preet Singh and Upasana Taku, counts Sequoia Capital<\/a> India, Bajaj Finance<\/a>, American Express, Cisco, and Abu Dhabi Investment Authority among its investors.
A spokesperson for Mobikwik could not immediately be reached for comments.
Mobikwik’s promoters Singh and Taku together hold 34.5% stake in the company.
Bajaj Finance owns 13.8% while Sequoia Capital India has a 17.2% stake. Bennett, Coleman and Company Limited, parent of Times Internet, owns a 1.08% stake in Mobikwik.
Digital payments startup Mobikwik<\/a> on Monday filed a Draft Red Herring Prospectus (DRHP) with capital markets regulator, the Securities and Exchange Board of India, to raise Rs 1,900 crore ($255 million) through an Initial Public Offering<\/a>. The DRHP, which ET has seen, showed that about Rs 1,500 crore would be raised through a primary share sale, while the remaining will be a secondary transaction where existing investors will sell stakes.
The Gurugram-based startup, which was valued at $700 million in its previous equity funding round in April when it raised $20 million (Rs 150 crore), is eyeing a valuation of $1 billion (Rs 7,459 crore) at its public market listing, sources aware of the matter said.
The 12-year-old startup joins a growing list of consumer internet firms including Zomato, Paytm, Nykaa and PolicyBazaar<\/a> that are eyeing stock exchange debuts this year.
The firm, founded in 2009 by Bipin Preet Singh and Upasana Taku, counts Sequoia Capital<\/a> India, Bajaj Finance<\/a>, American Express, Cisco, and Abu Dhabi Investment Authority among its investors.
A spokesperson for Mobikwik could not immediately be reached for comments.
Mobikwik’s promoters Singh and Taku together hold 34.5% stake in the company.
Bajaj Finance owns 13.8% while Sequoia Capital India has a 17.2% stake. Bennett, Coleman and Company Limited, parent of Times Internet, owns a 1.08% stake in Mobikwik.
“Our board has authorised the offer and the fresh issue... Our shareholders have authorised the offer pursuant to their resolution dated July 7, 2021,” Mobikwik said in the draft prospectus.
“Our company, in consultation with the book running lead managers, may consider a Pre-IPO Placement of such number of Equity Shares for cash consideration aggregating up to Rs 4,000 million, at its discretion, prior to filing of the Red Herring Prospectus with the Registar of Companies (RoC),” the company added.
Mobikwik has so far raised over $165 million, according to startup data platform Crunchbase. This includes equity and debt funding.
For the year ended March 31, 2021, its total income was down 18% to Rs 302.2 crore while losses widened to Rs 111.3 crore, the DRHP showed. The firm reported a loss of Rs 84.6 crore and Rs 141.8 crore, respectively, in FY20 and FY19. It specialises as an online wallet service for payments, cross-selling financial services products such as loans and insurance through tie-ups with financial services firms. The company recently became an aggregator of mutual funds and small-ticket credit services. Mobikwik has said previously that it has over three million merchants on its network and serves over 107 million users.
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