MobiKwik, a Fintech giant, has taken a big step by submitting its Draft Red Herring Prospectus (DRHP) to SEBI for an Initial Public Offering (IPO). The company aims to raise ₹700 crore through a fresh issue of equity shares, with no Offer for Sale (OFS) component.

This marks Mobikwik’s second IPO attempt, with SBI Capital Markets Limited and DAM Capital Advisors Limited acting as the Book Running Lead Managers (BRLMs). The DRHP mentions a potential pre-IPO placement of up to ₹140 crore, subject to consultation with the BRLMs.

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Interestingly, this time around, Mobikwik is aiming to raise less than half of the amount it initially sought during its first attempt at an IPO. The company had originally aimed to raise Rs 1,900 crore (approximately $255 million) through its debut on the domestic stock exchanges. The Gurugram-based company abandoned its listing plans in 2021 due to weak market conditions.

As per the offer document, the allocated funds include ₹250 crore for the growth of its financial services business, ₹135 crore for expanding payment services, and the remainder for developing data, machine learning, and AI-related products.

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For the six-month period ending September 30, 2023, Mobikwik reported a total revenue of ₹381 crore, with profits reaching ₹9.5 crore. In FY23, the company recorded a marginal 2.5% increase in total revenue to ₹540 crore, coupled with a 34% reduction in losses, which stood at ₹83.8 crore. This IPO signifies Mobikwik’s strategic push for growth and market presence.