Bajaj-Backed MobiKwik Files For Rs 2600 Crore IPO; Is It Paytm IPO Vs MobiKwik IPO Now?

On Monday, the digital payments firm Mobikwik, backed by Sequoia Capital and Bajaj Finance, filed a draft red herring prospectus (DRHP) for an IPO of up to Rs 1,900 crore with SEBI.

Mobikwik Planning For OFS And Fresh Issue

With this IPO, the payment firm is planning the issue of new shares worth 15 billion rupees and an offer for the sale of shares worth up to 4 billion rupees.

To achieve this, Mobikwik will be diluting the stakes of its two founders and current investors, including American Express, Cisco and Treeline Asia.

Further, Mobikwik is getting assistance from ICICI Securities, BNP Paribas, Credit Suisse, IIFL Securities and Jefferies as book managers for the IPO.

This IPO includes a fresh issue of shares worth Rs 1,500 crore.

the Gurgaon-based Mobikwik,’s bookrunners include ICICI Securities, BNP Paribas, Credit Suisse, Jefferies.

Mobikwik OFS

Apart from the fresh issue, it also includes OFS of Rs 400 crore comprising Rs 111 crore by founder Bipin Preet Singh, Rs 94 crore by Sequoia Capital, Rs 78 crore by founder Upasana Taku, Rs 68.9 crore by Bajaj Finance, Rs 24 crore by Treeline Asia, Rs 11 crore by Cisco Systems Rs 9.9 crore by American Express.

According to Bloomberg citing sources, it could seek a valuation of around $1 billion from the offering.

Once the pre-IPO placement is completed, the number of equity shares issued following such a placement will be reduced from the fresh issue.

Mobikwik Fund Utilization

Reportedly, the proceeds from the fresh issue will be used towards funding organic as well as inorganic growth initiatives and general corporate purposes.

So far, MobiKwik Systems is a leading mobile wallet (MobiKwik Wallet) and Buy Now Pay Later (BNPL) player in India.

The main focus of this firm is on addressing the unmet credit needs of the fast-growing online transactors by providing the convenience of everyday mobile payments with the benefits of Buy Now Pay Later.

Interestingly, this development comes just days after rival payments firm Paytm’s plan to file a DRHP ahead of its planned IPO slated for November. 

The biggest rival of Mobikwik, One97 Communications Ltd, the parent of digital payments firm Paytm, is also planning to raise $2.3 billion via an IPO, sources previously told Reuters.