IPO bound MobiKwik secures debt funding of Rs 50 crore

For its IPO, MobiKwik, a fintech company, has obtained a debt funding of Rs 50 crore from BlackSoil Capital by issuing 1,000 NCDs at a price of Rs 5,00,000 apiece. Through its IPO, the company hopes to raise Rs 700 crore, of which Rs 250 crore will go towards its financial services division. MobiKwik made Rs 9.5 crore in profits in the first half of FY24.

The startup is allotting around 800 non-convertible debentures (NCDs) in two tranches to BlackSoil to raise the funding at 15% interest per annum on the outstanding investment amount.

The fundraise comes a couple of months after MobiKwik bagged a term loan of INR 10 Cr from non-banking financial company (NBFC) Equentia Financial Service Private Limited (CredAble) for its working capital needs.

Earlier this year, MobiKwik refiled its draft red herring prospectus (DRHP) with the markets regulator Securities and Exchange Board of India (SEBI). The initial public offering (IPO) will not have any offer for sale (OFS) component.

It is pertinent to note that MobiKwik has slashed its IPO size by almost 63% from INR 1,900 Cr which it was looking to raise when it first filed its DRHP in 2021. At that time, the startup was looking to raise INR 1,500 Cr from a fresh issue of shares and INR 400 Cr via OFS. However, it shelved its IPO plans due to volatile market conditions.

The startup’s second attempt to go public comes at a time when it has improved its financial performance. MobiKwik turned profitable in the first six months of FY24.