New Delhi, NFAPost: MobiKwik, leading digital payment company that provides a mobile phone based payment system and digital wallet, got the nod from market regulator Sebi’s approval to launch an initial public offering.
Through this MobiKwik is planning to raise up to Rs 1,900 crore. MobiKwik, based out of Gurgaon, had filed the Draft Red Herring Prospectus (DRHP) for the Initial Public Offering (IPO) with Sebi in July.
With this IPO the Gurugram headquartered company plans to offer shares aggregating to Rs 1,900 crore. Out of the total, Rs 1,500 crore will be mopped up through fresh issue of shares and Rs 400 crore-worth stocks will be offloaded through the Offer-for-Sale (OFS) route by existing shareholders.
As per sources, Sebi has approved MobiKwik’s plan for the IPO. American Express Travel Related Services Company Inc, Bajaj Finance, Cisco Systems (USA) Pte Ltd, Sequoia Capital India Investment Holdings III, Sequoia Capital India Investments IV, Tree Line Asia Master Fund (Singapore) Pte Ltd, as well as the company’s promoters — Upasana Taku and Bipin Preet Singh — will be selling shares through the IPO.
MobiKwik Systems is a leading mobile wallet (MobiKwik Wallet) and Buy Now Pay Later (BNPL) player in India. The company is focused on addressing the unmet credit needs of the fast growing online transactors by combining the convenience of everyday mobile payments with the benefits of Buy Now Pay Later.
The funds that the company will receive from fresh issue of shares will be used towards funding organic as well as inorganic growth initiatives and general corporate purpose.
One MobiKwik Systems is a leading mobile wallet (MobiKwik Wallet) and Buy Now Pay Later (BNPL) player in India. The company is focused on addressing the unmet credit needs of the fast growing online transactors by combining the convenience of everyday mobile payments with the benefits of Buy Now Pay Later.
The company, under its ESOP 2014 Scheme, has reserved 4.5 million equity shares for creating a pool of ESOPs for the benefit of eligible employees.
Commenting on the development, MobiKwik Chairperson, Co-Founder and COO Upasana Taku had said the number of equity shares that would arise from the full exercise of options granted implies 7 per cent of the fully diluted outstanding shares.
“This 7% compares to less than 2% holding for most other internet companies that are coming up for listing. Over the last decade, MobiKwik has grown on the strength of its employees to become a leading fintech player in India,” said Upasana Taku
As the company cements its presence and leadership further, she said MobiKwik wants to acknowledge and reward its employees for their efforts.
About Rs 1,500 crore will be primary share sales while up to Rs 400 crore will be secondary share sales where existing investors can sell their stake.
Founded in 2009 by husband-wife duo Bipin Preet Singh and Upasana Taku, One MobiKwik Systems Limited was last valued at $700 million when it raised $20 million last month from Abu Dhabi Investment Authority (ADIA).