MobiKwik May Defer IPO As Valuation Drops
MobiKwik, a digital payments company, may delay its initial public offering (IPO) by two to three months, or perhaps to the following financial year, according to the Economic Times, as it struggles to find overseas institutional investors at the proper price.The news comes just days after larger rival Paytm’s disastrous stock market launch, which saw its shares plummet by more than 28%.According to the article, MobiKwik has been advised not to proceed with its IPO since it may be difficult to find adequate demand from institutional investors, both foreign and domestic.
“MobiKwik has a distinct DNA: it was bootstrapped for the first four years and has grown to 101 million members (as of March 2021) with a total investment of under $100 million. The company focuses on Buy Now Pay Later (BNPL) for everyday payments, and it has the most pre-approved BNPL subscribers in India, with 22.3 million (as of March 2021). It has always pursued a long-term growth plan. The company is seeing robust revenue growth, has a clear path to profitability, and will go public at the appropriate moment “In a statement, MobiKwik said.
MobiKwik Founder and CEO Bipin Preet Singh told news agency Reuters, “We did hope to have it (the IPO) around November.” “We have a one-year window to list beginning in October, and we will do so only if we believe we will have a successful IPO. We don’t do it to show off our bravery or to be bold and hopeful. You maximise your chances of success since you are doing this for the first time in the company’s history, and you want it to be a success.”MobiKwik, which is backed by Sequoia Capital and Bajaj Finance, filed for an IPO for up to Rs 1,900 crore in July this year.
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