MobiKwik Cuts IPO Size for Third Time
MobiKwik, a prominent Indian financial services startup, has made significant adjustments to its planned IPO size, marking the third reduction. The company has set a price band of ₹265-₹279 ($3.1-$3.3), resulting in a valuation of $250 million. This figure is a notable decrease from its previous private valuation of $924 million in 2021.
Headquartered in Gurugram, the fintech firm is supported by investors like Peak XV and ADIA. MobiKwik aims to raise approximately $69 million through the IPO, a considerable drop from its initial target of $255 million set in 2021. The IPO is scheduled to commence on December 11, with trading of the stock set to begin on December 18.
Challenges and Ambitions
Established 15 years ago, MobiKwik operates one of the most popular mobile wallet applications in India. However, the company has encountered challenges in maintaining its market relevance following the widespread adoption of UPI, a government-backed payment protocol. Despite these hurdles, MobiKwik has secured over $268 million in funding thus far.
The company has outlined plans to utilize the funds raised from the IPO to fuel its expansion initiatives and invest in artificial intelligence technology. With a user base of 161 million and serving 4.26 million merchants, MobiKwik remains focused on enhancing its services and offerings to meet the evolving needs of its customers.
