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News

MobiKwik cuts IPO size, values company at USD 250 mln

Monday 9 December 2024 10:54 CET | News

MobiKwik, an Indian fintech startup, has reduced the size of its planned initial public offering (IPO), adjusting its price band to INR 265 to INR 279 (approx. USD 3.1 to USD 3.3) per share.

 

This marks a significant decrease in the company’s valuation, which is now pegged at USD 250 million, down sharply from its last private valuation of USD 924 million in 2021. The Gurugram-based fintech, which is backed by prominent investors including Peak XV and ADIA, is now seeking to raise approximately USD 69 million from the IPO.

This is a substantial revision from the original target of USD 255 million set in 2021. The IPO is scheduled to open for subscription on 11 December 2024, with the stock expected to begin trading on 18 December 2024.




Founded in 2009, MobiKwik operates one of the most widely used mobile wallet platforms in India. However, the company has faced significant challenges in maintaining its market relevance, especially after the adoption of UPI (Unified Payments Interface), a government-backed digital payment system that has gained widespread popularity and significantly altered the digital payments landscape in India. As a result, MobiKwik has struggled to keep pace with competitors, despite having raised over USD 268 million in funding to date.

How does this affect their planning?

MobiKwik has stated that it intends to use the funds raised through the IPO to fuel its growth strategy, particularly by investing in artificial intelligence (AI) and expanding its product offerings. The startup claims to serve a substantial user base of 161 million individuals and 4.26 million merchants across India. 

Despite the recent cuts to the IPO size, the company remains optimistic about its prospects. The adjusted valuation reflects the changing dynamics within the Indian fintech sector and the intense competition in the digital payments space, where larger, more established players have garnered significant market share. Nevertheless, MobiKwik aims to leverage the IPO proceeds to enhance its platform and pursue growth opportunities in an increasingly competitive market.

Source: Link


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Keywords: fintech, digital payments, digital wallet, IPO, artificial intelligence
Categories: Banking & Fintech
Companies: MobiKwik
Countries: India
This article is part of category

Banking & Fintech

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MobiKwik

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