MobiKwik, an India-based online payments service that counts several corporates among its investors, filed yesterday for a Rs 19bn ($255m) initial public offering on the Securities and Exchange Board of India.
The offering will involve the company issuing approximately $201m of new shares while its existing shareholders will sell up to $54m.
Founded in 2009, MobiKwik provides an e-wallet that enables users to conduct online and offline peer-to-peer and consumer-to-business transactions. It covers payments in areas including utility bills, e-commerce and on-demand food delivery, and can be used with big-box retailers and drugstores.
The company has more than 100 million registered users and nearly 3.5 million businesses among its partners. Its revenue stood at $40.5m in the fiscal year ending March 2021, an 18% decrease from the year before, though its net loss decreased 12% to $14.9m over the same period.
MobiKwik had secured $29.7m in a March 2020 round which included $4.9m in equity funding from MK SPV IX, $14.8m in convertible debentures and $10m in warrant financing.
The 2020 round followed almost $160m in earlier funding, $1.3m coming from mass media group New Delhi Television and venture debt firm Trifecta Capital in mid-2019, after a $320,000 round earlier the same year featuring Gaurav Manglik and family office Fu Family Trust.
Venture capital firm Sequoia Capital led a $3m bridge round for Mobikwik in 2018, investing alongside payment services firm Net1 and GMO Venture Partners, a corporate VC vehicle for internet company GMO.
Consumer finance firm Bajaj Finance had provided $35.3m for the company in 2017, valuing it at $327m, an investment that came in the wake of a $40m injection from Net1 the previous year.
GMO’s Global Payment Fund had led a $50m series C round for Mobikwik that included fabless chipmaker MediaTek, Sequoia and Tree Line Asia earlier in 2016.
Tree Line Asia led Mobikwik’s $25m series B round in 2015, participating alongside Cisco Investments, the corporate venturing unit for networking equipment manufacturer Cisco, in addition to payment services group American Express and returning investor Sequoia.
Abu Dhabi Investment Authority and Treeline Asia are also among the company’s shareholders. ICICI Securities, BNP Paribas, Credit Suisse, IIFL Securities and Jefferies have been appointed lead underwriters for the IPO.
