- The company plans to use the new funding for marketing, hiring and acquiring new businesses.
- The fintech startup had raised $20 million last year, at a valuation of $700-$750 million.
- A company can go public within 12 months of SEBI’s approval, which:
mobikwik received last November.
Gurugram-based Mobikwik is in talks to raise $100 million amid a delay in its initial public offering (IPO) plans, said the founder and CEO of digital payments company Upasna Taku.
Taku, talking to
Bloomberg, revealed that the company plans to use the new funding for marketing, hiring and acquiring new businesses. The company has not yet made a decision on its valuation for its current funding round, she said.
The fintech startup had raised $20 million from Abu Dhabi Investment Authority (ADIA) in June last year, at a valuation of $700-$750 million. So far, the payment service has raised $176 million in funding, according to the business insights platform
crunch base†
The company counts American Express, Bajaj Finance, Cisco System, Sequoia Capital and Treeline Asia as investors, who will also sell some of their shares in the IPO. The company plans to raise ₹1,900 crore through this IPO.
Taku confirmed that the company is still planning to launch an IPO, but at a more opportune time. In an earlier conversation with https://gotechbusiness.com/, Taku said the company has until November 2022 to go public, as it received approval from the Securities and Exchange Board of India (SEBI) last November.
A company can go public within 12 months of SEBI’s approval.
Unstable markets and weak IPOs make Mobikwik nervous
Taku said the company is waiting for stable market conditions to go public.
“As you can see, they have [markets] are fairly up and down and unstable. And not just in India, but even worldwide. Thanks to the war cry between Ukraine and Russia, I think,
aur he grinds wala hai [the instability is likely to extend]† I don’t think tech companies can come to the stock market anytime soon, especially in the coming months,” Taku told https://gotechbusiness.com/ in February 2022.
However, an IPO is still on the cards and Mobikwik is ready, she added.
“But it is certainly a goal for us to reach the public markets. We have the SEBI clearance, our numbers even for the December quarter are fantastic. We are done. Business performance is strong, SEBI approval is here. But the markets aren’t ready yet, so we need to make sure we keep building the platform and wait for the right time,” she added.
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