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.
One Mobikwik Systems Limited is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its equity shares and has filed a draft red herring prospectus (“DRHP”) with the Securities and Exchange Board of India (“SEBI”) The DRHP is available on the SEBI website at www.sebi.gov.in as well as on the website of the lead managers, i.e., ICICI Securities Limited, BNP Paribas, Credit Suisse Securities (India) Private Limited, IIFL Securities Limited and Jefferies India Private Limited atwww.icicisecurities.com, www.bnpparibas.co.in, www.creditsuisse.com/in/en/investment-banking/regional-presence/asiapacific/india/ipo.html, www.iiflcap.com and www.jefferies.com, and the websites of BSE Limited and National Stock Exchange of India Limited at www.bseindia.com and www.nseindia.com, respectively. Investors should note that investment in equity shares involves a high degree of risk and for details relating to the same, see “Risk Factors” of the red herring prospectus filed with the RoC, when available. Potential investors should not rely on the DRHP for any investment decision.
The Equity Shares have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”)or any other applicable law of the United States and, unless so registered, may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and applicable state securities laws. Accordingly, the Equity Shares are being offered and sold (a) in the United States only to persons reasonably believed to be “qualified institutional buyers” (as defined in Rule 144A under the U.S. Securities Act) in transactions exempt from the registration requirements of the U.S. Securities Act, and (b) outside the United States in offshore transactions as defined in and in compliance with Regulation S and the applicable laws of the jurisdiction where those offers and sales are made. There will be no public offering in the United States.
For further information about the Company and the restated consolidated financial information of the Company for the last three Fiscals, see the section titled “Financial Information” of the DRHP.