Mobikwik Resumes IPO Preparation, Plans to Submit DRHP in the Coming Month

• ByStartupStory     |    November 30, 2023

One Mobikwik Systems Ltd, the parent company of the fintech unicorn Mobikwik, is gearing up for its initial public offering (IPO), aiming to raise approximately $84 million (about INR 700 crore) from the public listing. According to a report from Bloomberg, Mobikwik has enlisted the services of DAM Capital Advisors Ltd and SBI Capital Markets Ltd as its banking partners for the IPO. The company is actively working on filing its draft red herring prospectus (DRHP) by December and anticipates going public next year.

Mobikwik had previously filed a DRHP for its IPO, amounting to around INR 1,900 crore, with the Securities and Exchange Board of India (SEBI) in 2021. The IPO included the issuance of new shares worth INR 1,500 crore and an offer for sale (OFS) component of INR 400 crore. In October of the same year, SEBI granted approval for Mobikwik to launch its IPO.

However, the IPO process was temporarily halted amid the challenging conditions in the global equities market. In January of the following year, Mobikwik explicitly stated its decision to defer its market debut until market conditions stabilized. The year 2022 witnessed significant volatility in the share prices of listed new-age tech stocks.

With the market demonstrating increased stability this year, driven by improved financial performances and growth trajectories, Mobikwik is reviving its IPO plans. The fintech major has also achieved profitability, marking a second consecutive profitable quarter in Q2 FY24 with a profit after tax (PAT) of INR 5 crore.

In a recent statement, Mobikwik reported a 17% year-on-year (YoY) increase in total revenue to INR 208 crore during the September quarter. The positive market environment this year has prompted various new-age tech startups, including OYO, GoDigit, and Navi, to prepare for their IPOs in the coming year. Additionally, Ola Electric, Swiggy, and PayU are reportedly gearing up for their public listings, aligning with the trend of startups expediting their IPO plans in the current favorable market conditions.

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