Digital dominates as MobiKwik all set for IPO

It looks like the new age of digital IPOs. After Zomato announced the opening of its IPO on 14 July, many more digital players will use this digital trend to make a mark. Of course, the mega Paytm IPO is already in the works and another mega digital issue of Nykaa is also expected during this fiscal. But, next on the digital line for IPOs appears to be MobiKwik, which just filed the Draft Red Herring Prospectus (DRHP) with SEBI for its proposed IPO.

According to the DRHP, MobiKwik will raise fresh funds of Rs.1,500 crore and will also do an offer for sale (OFS) for Rs.400 crore, taking total IPO size to Rs.1,900 crore. Some of the early investors taking partial exit in the OFS will include American Express, Bajaj Finance, Cisco, Sequoia Capital and Treeline Asia. Meanwhile, the company is also planning a pre-IPO placement, in which case the IPO size will  be reduced proportionately. 

In India, MobiKwik offers two principal services viz. MobiKwik Wallet, which is a simplified payment system, and BNPL facility, which is a buy now pay later scheme for users. The focus of MobiKwik has been to address the unmet credit demands in online transactions by combining the wallet and BNPL. As of now, ecommerce is a largely under-represented segment in the Indian stock markets. Hopefully that should change with Zomato, Paytm and MobiKwik listing on the bourses.