Mobikwik Secures Rs 50 Crore Debt Funding from BlackSoil Capital Ahead of IPO

• ByStartupStory     |    March 29, 2024

Gurugram-based fintech company MobiKwik is gearing up for its upcoming initial public offering (IPO) by securing Rs 50 crore in debt funding from BlackSoil Capital through non-convertible debentures (NCD), according to recent reports.

MobiKwik’s Board has passed a special resolution to issue 1,000 NCDs at an issue price of Rs 5 lakh each, aimed at raising Rs 50 crore, as reported by Entracker, citing data from Registrar of Companies (RoC). This strategic move comes as part of MobiKwik’s larger plan to raise Rs 700 crore through its IPO, with no offer-for-sale component, as indicated by a revised draft red herring prospectus (DRHP) filing with the Securities and Exchange Board of India (SEBI).

The fintech startup had previously filed for a Rs 1,900 crore issue in 2021, but the current filing suggests a significant reduction in the fundraising target. Additionally, MobiKwik has expressed intentions to consult with the book-running lead managers regarding the issuance of additional specified securities, amounting to Rs 140 crore, through methods such as private placement, preferential allotment, rights issue, or any other viable mechanism as a “pre-IPO placement.” In the event of such a placement, the size of the fresh issue will be adjusted accordingly.

This recent debt funding from BlackSoil Capital marks another milestone in MobiKwik’s fundraising journey. Since August 2022, the company has raised a total debt of Rs 55 crore from BlackSoil and Bengaluru-based alternative investment fund, Karnation, as indicated by separate RoC filings. The Board at MobiKwik passed resolutions to allot 900 NCDs in two tranches, amounting to Rs 35 crore and Rs 10 crore, respectively, from BlackSoil.

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