Mobikwik, a payment platform based in Gurugram, has received final approval from the Securities and Exchange Board of India (SEBI) to raise 700 crore through an initial public offering (IPO). The company refiled its IPO documents with the regulator in January this year.

The upcoming IPO will consist entirely of a fresh issue of equity shares, without any offer-for-sale component. Mobikwik may consider an additional issue of securities, including private placement, preferential allotment, or rights issue, aggregating up to 140 crore as a pre-IPO placement, which will subsequently reduce the size of the fresh issue.

Recently, Mobikwik secured 50 crore in debt from BlackSoil Capital. Reports about this development were initially highlighted by Entrackr in March.

The company plans to allocate the IPO proceeds as follows: 250 crore to expand its financial services business, 135 crore to enhance its payment services, 135 crore for investments in data, AI, ML, and technology, 70.28 crore for capital expenditure on its payment devices business, with the remainder designated for general corporate purposes.

Founded by Bipin Preet Singh and Upasana Taku, Mobikwik provides a range of payment and financial services to businesses and merchants. Its offerings include online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC Machine, and Merchant Cash Advance.

Additionally, through its subsidiary Zaakpay, Mobikwik operates a B2B payment gateway for e-commerce businesses and has received RBI approval for its Payment Aggregator (PA) business.

In FY24, Mobikwik’s revenue from operations grew to 875 crore, up from 539 crore in FY23, marking its return to profitability with a net profit of 14 crore compared to a loss of 84 crore in the previous fiscal year.

The company reported a 32.33% annual growth rate in payment gross merchandise value (GMV) and a remarkable 354.86% increase in MobiKwik ZIP GMV disbursements between FY21 and FY23. SBI Capital Markets and DAM Capital Advisors are the lead managers for the IPO, with Link Intime India Private Limited acting as the registrar. However, Mobikwik has faced challenges with its P2P lending platform, Xtra, following RBI's crackdown, leading to investor complaints regarding withdrawals and policy changes.