INDIA - Mobikwik Systems Ltd., a prominent fintech player in India, is advancing its plans for an initial public offering (IPO) in Mumbai, with the aim of raising approximately $84 million. The Gurugram-based company, known for its mobile wallet and buy now, pay later services, is working closely with DAM Capital Advisors and SBI Capital Markets to prepare for the share sale, which is targeted for 2024.
The IPO preparations are moving forward, with the company expecting to file its prospectus by December. This move comes after Mobikwik achieved profitability at the end of 2021, an important milestone for the company amid a challenging environment for tech stocks. The decision to pursue an IPO also aligns with the company's growth strategies and follows a record-breaking year for the Indian IPO market, which has seen over 205 companies listed in 2023.
Mobikwik, which has garnered a user base of over 101 million and partnerships with more than three million merchants, is backed by a roster of prestigious investors, including the Abu Dhabi Investment Authority, American Express (NYSE:AXP), and Sequoia Capital. The company's progress toward an IPO is significant, given the previous tech stock downturn that affected its peers, such as Paytm, since its public debut in November 2011.
The exact size and timing of the fundraising are subject to change as discussions remain private and ongoing. Nonetheless, Mobikwik's forthcoming IPO is part of a broader equities rally in India, marking the company's entry into the public market during a period of heightened investor interest in the fintech sector.
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