Theranautilus Secures $1.2 Mn in Seed...
19 Nov 2024
MobiKwik, the fintech company gearing up for its public listing, has decided to reduce its initial public offering (IPO) target to Rs 700 crore, significantly lower than its original Rs 1,900 crore target in 2021.
This decision aligns with improved revenue and a positive earnings before interest, taxes, depreciation, and amortisation (Ebitda) in FY24, according to MobiKwik’s co-founder and CFO, Upasana Taku.
"With approximately Rs 890 crore in revenue last fiscal, we are on a growth path that requires less funding than we anticipated in 2021,” Taku explained, adding that the company now seeks a 5x growth target rather than a 10x leap.
The 2024 IPO will support MobiKwik’s rapid progress in financial services and payments while emphasizing sustainability and long-term profitability in a more stable market environment.
MobiKwik’s revised IPO proceeds allocation includes Rs 250 crore for its financial services, Rs 135 crore for payments infrastructure, and additional funds for data, AI/ML, and tech upgrades.
Additionally, about Rs 70 crore will fund capital expenditure for its payment devices business. Taku noted that revenue from payments has become a larger portion of MobiKwik’s business, now accounting for an increased share within its service mix.
Taku also highlighted MobiKwik’s strategic shift toward offline merchant acquisition. “We’re now taking a larger role in offline payments through tools like soundboxes, EDC devices, and merchant loans,” she added. By September 2023, MobiKwik had over 146 million registered users and around 3.8 million merchants.
Reflecting on the IPO timing, Taku remarked that the 2021 market was inflated, creating unsustainable valuations. “Now, in 2024, market conditions are more grounded, appreciating growth and profitability over pure valuation hype.” MobiKwik’s refined IPO approach aligns with a sustainable, growth-focused strategy.
Chat on WhatsApp
Request a call back
