Moneyview Receives SEBI Nod to Proceed With Over ₹1,500 Crore IPO

Fintech unicorn Moneyview has secured the Securities and Exchange Board of India’s (SEBI) approval to move ahead with its proposed initial public offering (IPO). The market regulator issued its final observation letter on June 29, enabling the company to launch the public issue after completing the remaining regulatory and procedural requirements.

Moneyview had submitted its draft red herring prospectus (DRHP) with SEBI in March. According to the draft documents, the IPO will consist of a fresh issue of equity shares worth up to ₹1,500 crore along with an offer for sale (OFS) of up to 13.61 crore equity shares by existing shareholders.

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Fresh Capital to Support Lending Business

The company plans to use the proceeds from the fresh issue to strengthen its lending operations. Out of the ₹1,500 crore proposed to be raised through the fresh issue, ₹650 crore has been earmarked to support loan disbursals under default loss guarantee (DLG) arrangements.

Another ₹450 crore will be infused into its wholly owned non-banking financial company (NBFC) subsidiary, Whizdm Finance Pvt. Ltd., to strengthen its capital base and support future business expansion.

The remaining proceeds will be utilised for purposes outlined in the company’s offer documents, subject to the final terms of the issue.

Existing Shareholders to Pare Stakes

The offer for sale will provide an exit opportunity to several existing shareholders. According to the DRHP, co-founders and promoters Puneet Agarwal and Sanjay Aggarwal will sell part of their holdings through the OFS.

The share sale will also include participation from investors such as Accel, Ribbit Capital and Tiger Global, among others. Since the OFS involves the sale of existing shares, the proceeds from this portion will go to the selling shareholders and not to the company.

SEBI’s issuance of the final observation indicates that the regulator has completed its review of the draft offer documents, allowing the company to proceed with the next stage of the IPO process.

Digital Lending Remains Core Business

Founded in 2014, Moneyview is an online lending platform focused on offering personal unsecured loans, particularly to the underserved borrowers and first-timers. Moneyview works with various banks and NBFCs to offer loans via its mobile app and website; however, Moneyview lends money using its lending company called Whizdm Finance.

Moneyview has created its entire business on digital underwriting and technology-driven loan origination by catering to customers who are underserved. The proposed fund-raising will enable Moneyview to expand its loan portfolio in the wake of rising digital credit demand.

With regulatory approval now in place, Moneyview joins the list of technology-focused companies preparing to tap the primary market. The company is expected to announce the issue schedule after completing the remaining statutory formalities and finalising the terms of the public offering.