fbpx

MobiKwik targets IPO before September

MobiKwik System Pvt, the Indian digital wallet and payments startup, is planning an initial public offering before September that could raise between $200 million and $250 million, according to people familiar with the proceeding.

MobiKwik is looking to file its draft IPO prospectus by May for an offering in Mumbai that will potentially value the company at over $1 billion, the people said, urging not to be identified as the information is confidential. The Gurgaon-based company plans to hold a pre-IPO funding round that could put the startup at a valuation of about $700 million, they said.

Discussions are in progress and details such as the size and timing of the fundraising could change, the people said. A representative for MobiKwik declined to comment.

According to its website, MobiKwik records over a million transactions per day, across offerings including digital wallets and services such as mobile phone top-ups and utility bill payments. Its network comprises more than 3 million merchants and serves over 107 million users. Founded in 2009, the company has Sequoia Capital and Bajaj Finance Ltd. among its backers.

The value of transactions in India’s digital payments market can possibly reach 163 trillion rupees ($2.3 trillion) in 2022-2023, according to a PwC report. The sector is quickly becoming a proxy battleground for foreign tech giants, with Facebook Inc.’s WhatsApp receiving permission in November to operate locally, competing against Google Pay, Walmart Inc.’s PhonePe, and Paytm which is backed by both Ant Group Co. and SoftBank Group Corp.’s Vision Fund. In July, MobiKwik co-founder Bipin Preet Singh requested Indian regulators to encourage local companies and protect against foreign competitors.

Tags

top