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Mobikwik digital payment service turns unicorn ahead of IPO

The valuation of fintech platform MobiKwik has crossed the billion dollar mark, making it the 33rd Indian start-up to become a unicorn this year.

The development comes after MobiKwik staff exercised their employee share ownership plan (Esop) during a secondary sale. The sale was led by Mathew Cyriac, former head of Blackstone India. According to media reports, Cyriac bought shares at nearly double the price he had invested in the start-up earlier this year.

Earlier this week, the Gurugram-based startup received the green light from SEBI to launch the Initial Public Offering (IPO) of Rs 1,900 crore. In its draft prospectus on red herring (DRHP), MobiKwik revealed that it had reserved 4.5 million shares for Esop.

The company said last month that its IPO, including an offer to sell of up to Rs 400 crore and a main share issue of Rs 1,500 crore, would create seven billionaire employees. The platform envisages a valuation of the IPO of around 1.5 to 1.7 billion dollars. Its public offering is expected to hit the market before Diwali.

MobiKwik filed the draft document in July, just days after rival Paytm launched its IPO, valued at Rs 16,600 crore.

Weeks before filing the DRHP for an IPO, the fintech platform had raised 149 crore rupees ($ 20.4 million) in its Series G round with the Abu Dhabi Investment Authority. (ADIA).

Founded in 2009 by Bipin Preet Singh and Upasana Taku, MobiKwik is backed by Sequoia Capital, Teeline Asia and Cisco Systems. In fact, Sequoia Capital, the company’s second largest shareholder, will get around Rs 95 crore from the sale of shares.

Currently, Mobikwik has a user base of 101 million. However, the platform recorded a loss of Rs 111 crore in the fiscal year ended March 31, 2021. Its total income was also down to Rs 302 crore, down 18% from the fiscal year. previous.

(Edited by : Anilkumar Narayan)