One MOBIKWIK Systems Limited (MobiKwik or the Company) has filed its draft red herring prospectus (DRHP) in connection with its initial public offering (IPO) with the Securities and Exchange Board of India (SEBI). The IPO offer size is up to ₹19,000 million, comprising a fresh issue of equity shares of up to ₹15,000 million and an offer for sale of equity shares by certain of our shareholders of up to ₹4,000 million. The Company may consider a pre-IPO placement of equity shares of up to ₹4,000 million.
Launched in 2009 by Bipin Preet Singh and Upasana Rupkrishan Taku, MobiKwik is one of the largest mobile wallets (MobiKwik Wallet) and Buy Now Pay Later (BNPL) players in India, based on mobile wallet gross merchandise value (GMV) and BNPL GMV, respectively, in Fiscal 2021, as per the RedSeer Report. The Company leverages big data analytics and deep data science to address unmet credit needs of the fast growing digitally paying users by combining the convenience of everyday mobile payments with the benefits of BNPL.
The Company had over 101.37 million registered users and more than 3.44 million ecommerce, physical retail and biller merchant partners, as of March 31, 2021. MobiKwik Wallet use cases include ecommerce shopping, food delivery, bill payments, petrol pumps, large retail chains and pharmacies.
As per the RedSeer Report, India’s BNPL market is expected to grow to 80-100 million users and US$ 45-50 billion in spends by FY26. MobiKwik Zip is the Company’s flagship BNPL product, which is focused on providing the unserved Indian population, their first experience of credit. It’s BNPL transactions grew over 5x in FY21 and as of end FY21, it had pre-approved 22.25 million users for MobiKwik Zip.
The Company’s total income has almost doubled since FY19 and was over ₹3 billion for FY21. It has been profitable at segment level across all its business segments for the last 2 financial years. The net proceeds are proposed to be utilised for growth initiatives, invest in data sciences, products & technology and enhance user and merchant experience.
MobiKwik has raised around US$ 35 million since the beginning of 2021 with the most recent fund raise of US$ 20 million.
Speaking on the announcement, Bipin, MD & CEO said, “At MobiKwik, our mission is to offer Buy Now Pay Later credit to a large number of Indians who today don’t have a credit card. A financially inclusive India is the foundation of a strong, self-reliant Bharat.”
ICICI Securities Limited, BNP Paribas, Credit Suisse Securities (India) Private Limited, IIFL Securities Limited and Jefferies India Private Limited are the Book Running Lead Managers to the IPO.