One MobiKwik Systems IPO - 7 Things to Know
One MobiKwik Systems Ltd, the company behind the highly popular MobiKwik App, was about to come out with its IPO late last year but had to shelve plans after the weak listing of Paytm. MobiKwik had squarely blamed Paytm for its decision to put off the IPO at that point of time. As of now, the company has not yet committed about the timing of the IPO but is expected to come out with its IPO sometime in the first half of calendar year 2022.
7 Interesting Facts to Know About MobiKwik IPO
1) One MobiKwik Systems Ltd has filed for a Rs.1,900 crore IPO with SEBI which comprises of a fresh issue of Rs.1,500 crore and an offer for sale or OFS of Rs.400 crore. The MobiKwik IPO has already been approved by SEBI and the plans were also firmed up in the Dec-21 quarter before it was shelved in the light of the weak listing of Paytm. The SEBI approval is valid for a period of 1 year, so MobiKwik still has time for the IPO.
2) One MobiKwik Systems Ltd predominantly operates in 3 business verticals. Firstly, it is into offering Buy Now Pay Later or BNPL facility via its Zip and Zip EMI facility. This is targeted at middle class Indians to manage their routine payments. Secondly, it also provides a MobiKwik Wallet to facilitate mobile payments. Lastly, MobiKwik also offers a payment gateway offering end-to-end solutions including ZaakPay to customers.
3) One MobiKwik Systems Ltd is focussed on the fast growing digitally savvy retail customers. It already has over 10.1 crore registered customers on its platform and over 34.5 lakh registered business and merchant partners. The company enjoys strong brand recognition, a veritable positioning in the consumer mindshare and a payment solution that is largely technology driven and algorithm based.
4) Like most of the start-ups in this space, One MobiKwik Systems Ltd has been making losses in the last three fiscal years of FY19, FY20 and FY21. The pandemic did provide a major boost to the online payment systems and the digital interfaces. However, the total revenues for FY21 at Rs.303 crore has more than doubled over the last 2 years, showing strong growth traction though the pandemic years.
5) The fresh issue component of One MobiKwik Systems Ltd will be largely used for organic expansion purposes. In addition, some part of the fresh funds will also be deployed for inorganic purposes like mergers and acquisition of niche players to expand its franchise in a cost effective manner and fill the product positioning gaps. The OFS component will provide exit route to early investors.
6) One MobiKwik Systems Ltd has been promoted by Bipin Preet Singh, Rupkrishan Taku family trust and the Narinder Singh family trust. These promoters will also be look at a minor exit in the OFS. The promoters of the OFS had been extremely vocal about the size of the Paytm IPO and the aggressive valuations which had created a major problem for smaller sized IPOs like MobiKwik, operating in a similar niche.
7) The IPO of One MobiKwik Systems Ltd will be lead managed by BNP Paribas, Credit Suisse Securities India, ICICI Securities, IIFL Securities Ltd and Jefferies India Private Ltd. They will act as the book running lead managers or BRLMs to the issue. Link Intime Private Limited will be the designated registrars to the issue.
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