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Fintech company One Mobikwik Systems Limited is planning to raise Rs 1900 crore through an initial public offering (IPO). The face value of the equity shares is Rs 2 each.
The offer comprises of a fresh issue of Rs 1500 crore and an offer for sale of Rs 400 crore. The company has decided that the IPO will include a reservation of a portion of the shares on offer for eligible employees.
Company Summary
The fintech company is one of the largest players in the mobile wallets (MobiKwik Wallet) and Buy Now Pay Later (BNPL) segments in India based on mobile wallet gross merchandise value (GMV) and BNPL GMV, respectively, in fiscal year 2021.
The company focuses on addressing the unmet credit needs of the fast growing online consumers segment. Mobikwik is a technology-first company leveraging big data analytics and deep science including machine learning to expand their businesses.
As of March 31, 2021, the company had over 101.37 million registered users and more than 3.44 million ecommerce, physical retail and billing partners.
MobiKwik also has its own payment gateway, Zaakpay, which was introduced in 2012. Zaakpay facilitates websites and mobile apps to collect payments from their users using multiple payment options that includes including debit and credit cards, mobile wallets, UPI and net banking.
The company’s flagship BNPL product, MobiKwik Zip, caters to 22.25 million users, who have been pre-approved for MobiKwik Zip. In fiscal 2021, MobiKwik Zip users repeat rate was 79.19%.
The fintech company has partnered with leading lending institutions to drive its loan growth in a cost effective manner. They have partnered with five lending institutions, namely, IDFC FIRST BANK, InCred, Fullerton India Credit Company Limited, DMI and Faircent.com.
Mobikwik also offers micro insurance (life, health and general) products, mutual fund investments and trading of digital gold.
Company Strengths
- Strong and wide network resulting in growth across business verticals
- Large and growing user base with low customer acquisition cost
- MobiKwik has a strong brand name and the brand is recognised across India
- Technology and product first approach to business
Company Promoters
Bipin Preet Singh, Upasana Rupkrishan Taku, Koshur Family Trust and Narinder Singh Family Trust are the promoters of the company.
Financial Summary
Particulars | For the year/period ended (Rs in crore) | ||
31-Mar-21 | 31-Mar-20 | 31-Mar-21 | |
Total Assets | 423.14 | 337.94 | 335.08 |
Revenue | 302.26 | 369.85 | 160.23 |
Profit After Tax | (111.30) | (99.92) | (147.97) |
Purpose of the IPO
The company plans to use the net proceeds from the IPO for the following purposes:
- To fund organic growth initiatives
- To fund inorganic growth through acquisitions and other deals
- For general corporate purposes