Indian fintech firm MobiKwik hires advisers to set ball rolling on IPO

Currently almost 30,000 tickets are booked daily through the IRCTC android app. Photo: Indranil Bhoumik/Mint

In line with its plans to go public in 2022, fintech firm MobiKwik has appointed investment banks ICICI Securities and IIFL, besides a few law firms, to kickstart the work on the draft red herring prospectus, two people in the know said, seeking anonymity.

MobiKwik is also in talks with a few more investment banks to bring them on board to manage the initial public offering (IPO), said one of the two people cited above. “They will go for a domestic IPO.”

Several Indian startups in the fintech and consumer payments space, such as Paytm and PhonePe, are planning to go public.

Valued at $16 billion, Paytm’s IPO is expected in 2022, while PhonePe, which is currently valued at $7 billion, may go public in 2023, according to news reports.

Mint reported on 16 February that online insurance aggregator PolicyBazaar is in the process of hiring investment banks to manage its proposed 4,000-crore IPO.

Several other consumer internet companies, such as Zomato, are also working on their IPOs.

“The IPO will help the company raise fresh funds to continue its growth trajectory, but also provide an exit for its earlier investors. A large part of the IPO is expected to be sale of shares by existing investors,” said the second person cited above.

MobiKwik, ICICI Securities and IIFL declined to comment on Mint’s queries.

To prepare for its IPO, MobiKwik has been making changes to its top management. Senior vice president Chandan Joshi was named as a co-founder, though he was not part of the founding team of Bipin Preet Singh and Upasana Taku.

Joshi will assume the role of chief executive of the payments business, which drives 75% of the company’s revenue, said MobiKwik.

The Gurugram-based company reported strong financial results in FY20 with net revenue growing at 133% year-on-year to 379 crore and cash Ebitda loss reduction of 91% year-on-year to 8.5 crore. Ebitda is earnings before interest, taxes, depreciation and amortization.

According to media reports, the company is eyeing profitability in FY22 with a revenue target of more than 750 crore.

The company has so far raised $110 million ( 797 crore) in funding since its inception. Last December, it had raised 52 crore led by Hindustan Media Ventures, the investment arm of HT Group.

MobiKwik was started in 2009 as a consumer payments platform. It has evolved into a fintech company offering financial products including loans, gold investment and mutual funds. It also has its own payment gateway, Zaakpay.

Credit products have been a key area of interest for the company in recent years.

In January, MobiKwik announced Home Credit money app, a joint venture with Home Credit India, to provide instant interest-free loans of 1,500-10,000.

Since 2018, MobiKwik has pre-approved 15 million users for its digital credit card.

Currently, MobiKwik has more than 120 million users and 3 million merchants, the company said.

MobiKwik entered the mutual fund space with the acquisition of Mumbai-based startup Clearfunds in 2018.

The company’s consumer payments revenue in FY2020 was 230 crore, up from 89 crore a year ago, while fintech revenue rose to 91 crore in FY2020 from 29 crore a year ago.

This article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.