Mobile payments startup MobiKwik is making strategic financial moves as it prepares for its upcoming Initial Public Offering (IPO). Reports suggest that the company is set to raise Rs 50 crore in debt funding from BlackSoil Capital through non-convertible debentures (NCD).
Key Details:
- Funding Source: BlackSoil Capital
- Amount: Rs 50 crore
- Instrument: Non-convertible debentures (NCD)
- Resolution: MobiKwik’s Board passed a special resolution to issue 1,000 NCDs at an issue price of Rs 5 lakh each, totaling Rs 50 crore.
Background:
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IPO Plans: MobiKwik aims to raise Rs 700 crore through its IPO, with no offer-for-sale component, according to a revised draft red herring prospectus (DRHP) filing with SEBI. This marks a revision from its previous filing for a Rs 1,900 crore issue in 2021.
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Pre-IPO Placement: The company is also considering a pre-IPO placement of Rs 140 crore through various methods, including private placement, preferential allotment, and rights issue. This could potentially affect the size of the fresh issue.
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Previous Debt Raises: MobiKwik had raised smaller amounts of debt in tranches since 2022. RoC filings indicate that it secured a total debt of Rs 55 crore from BlackSoil and Karnation, an alternative investment fund based in Bengaluru.
Debt Funding Details:
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Previous Transactions: Two separate RoC filings revealed MobiKwik’s debt raises since August 2022, totaling Rs 55 crore from BlackSoil and Karnation.
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Resolution: MobiKwik’s Board approved the allotment of 900 NCDs in two tranches – 700 and 200 NCDs, respectively – at an issue price of Rs 5 lakh each, raising Rs 35 crore and Rs 10 crore from BlackSoil.
Conclusion:
MobiKwik’s strategic debt funding from BlackSoil Capital underscores its commitment to financial stability and growth as it moves closer to its IPO. These developments position the company favorably in the competitive landscape of mobile payments and fintech.
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