According to draft papers submitted with the markets regulator, MobiKwik has decreased the size of its first public offering (IPO) to Rs 700 crore from Rs 1,900 crore expected in 2021. The Gurugram-based company stated that it will spend Rs 250 crore of the total funds raised for growth, Rs 135 crore for banking and payment services business, and Rs 135 crore for data, artificial intelligence and machine learning (AI/ML), product and technology investment. Capital expenditure of approximately Rs 70 crore will be incurred for its payment devices business and general corporate purposes.
According to Mobikwik's draft red herring prospectus (DRHP), the IPO will be wholly comprised of a fresh offering of Rs 700 crore with a face value of Rs 2 per equity share. It will not include an offer for sale (OFS). It may also explore a Rs 140 crore pre-IPO placement. Upasana Taku, co-founder and chief operating officer (COO) of MobiKwik, told 'Business Standard' in September 2023 that the business canceled its ambitions for an IPO in 2021 since the market was poor.
"When we went to it (the IPO) the last time, we were at the back of the queue in terms of Sebi approvals." There had been other IPOs before us. "At the end, you may see a waning of the market's appetite," Taku predicted last year.
The company has made a profit in two consecutive quarters, earning Rs 5 crore in profit after tax (PAT) in Q2 FY24, up from Rs 3 crore in Q1 FY24. Its revenues increased 17.5% to Rs 208 crore in Q2 FY24, up from Rs 177 crore the previous quarter. The company reported a 68% quarter-on-quarter increase in revenue to Rs 177 crore in Q1 FY24.
As a result, the company's revenue from operations for the six months ended September 30, 2023 was Rs 381.09 crore, and profit was Rs 9.48 crore. Among other financial goods and services, the company provides online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), and Merchant Cash Advance.
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