Fintech major Mobikwik has received approval from the Securities and Exchange Board of India (SEBI) to launch its Rs 1,900 crore initial public offer (IPO), paving the way for the first Indian fintech company to list on the bourses, two sources familiar with the matter told BusinessToday.
The IPO offer size comprises of a fresh issue of equity shares of up to Rs 1,500 crore and an offer of sale for certain existing shareholders of up to Rs 400 crore. Mobikwik will invest the proceeds from the IPO to expand its mobile wallet and to grow its Buy Now Pay Later (BNPL) platform through organic and inorganic initiatives, sources said.
The Gurgaon-headquartered company had filed its Draft Red Herring Prospectus (DRHP) in July this year.
BT has reached out to the company for an official comment. The story will be updated as and when they respond.
Mobikwik, which was launched as a wallet in 2009 and started its BNPL platform in 2019, is focused on solving India's unmet credit needs. Its BNPL platform combines the convenience of everyday payments along with the specific benefits of BNPL, but by using big data. The platform, according to the company, has seen exponential growth with 23 million pre-approved users, as of June 30, 2021.
Mobikwik had also raised over $35 million in 2021, with the most recent being $20 million from the Qatar-based Abu Dhabi Investment Authority in June this year.
ICICI Securities Limited, BNP Paribas, Credit Suisse Securities (India) Private Limited, IIFL Securities Limited, and Jefferies India Private Limited are the Book Running Lead Managers on the IPO.
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