Empowering Fintech Dreams: MobiKwik’s Resilience and Renewed IPO Pursuit in the Evolving Indian Market
Introduction:
In a determined move towards its initial public offering (IPO), Delhi NCR-based fintech unicorn MobiKwik has refiled its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). The company is gearing up to raise INR 700 Crores through fresh issues of shares, excluding any offer-for-sale component.
Fresh Issues and Pre-IPO Placement: MobiKwik’s IPO strategy involves the issuance of fresh shares, contributing to a substantial INR 700 Crores. Notably, the startup is also exploring a pre-IPO placement to secure an additional INR 140 Crores in consultation with book running lead managers (BRLMS). It’s worth mentioning that, should the pre-IPO placement be successfully executed, the size of the fresh issue will be adjusted accordingly.
Financial Performance: As of the first six months of the fiscal year 2024, MobiKwik has reported a net profit of INR 9.5 Crores. This robust financial performance underscores the company’s stability and potential attractiveness to investors in the upcoming IPO.
Second Attempt at Going Public: This marks MobiKwik’s second attempt to navigate the intricacies of the IPO landscape. Undeterred by previous challenges, the fintech giant is signaling confidence in its business model and prospects by reinitiating the IPO process.
Market Dynamics and Fintech Landscape: MobiKwik’s move comes against the backdrop of a dynamic fintech landscape in India, where digital payments and financial services are experiencing unprecedented growth. As one of the key players in this space, MobiKwik’s IPO is poised to be closely watched by industry experts and investors alike.
Closing Thoughts: With the re-filing of the DRHP, MobiKwik is back on track to bring its IPO plans to fruition. The startup’s commitment to raising substantial capital and the positive financial indicators from the first half of FY24 position MobiKwik as a noteworthy player in the fintech IPO arena. As developments unfold, market observers will be keenly monitoring the progress of MobiKwik’s IPO journey and its potential impact on the broader financial technology sector in India.