Mobikwik, founded in 2009 by Bipin Preet Singh and his wife Upasana Taku, has raised over $165 million. And reports indicate that the digital payments startup is now planning to raise $250-$300 million through an initial public offering (IPO). It is also set to file a Draft Red Herring Prospectus (DRHP) with the capital markets regulator within a week.
the reason behind this sudden development is that the company’s biggest rival Paytm is also planning to file DRHP before its planned IPO in November. According to sources, Mobikwik has completed the paperwork on Thursday and will file the DRHP with the Securities and Exchange Board of India (Sebi) soon.
the founders of the digital payment startup are yet to give any official comments regarding this matter with no response from the company authorities either. This year has witnessed many Indian start-ups going for IPO with Zomato’s capital raising arriving soon. Sources, also suggest that Mobikwik may seek a valuation of $1 billion for the IPO.
it’s not just Mobikwik that is going public this, Zomato plans to file its DRHP for an IPO soon after its extraordinary general meeting (EGM) on July 12. Other companies like Delhivery, Nykaa, and PolicyBazaar are also expected to go public this year.
Mobikwik’s is not a small company and contains data from several thousand users. According to recent reports, the company’s user database was breached recently, and the Reserve Bank of India had ordered a probe into the matter. However, the company officials have denies any such possible breach. The digital payments service reportedly conducts over one million daily transactions across its network, including on its digital wallet, UPI, and bill payment services.
