Digital Wallet Provider MobiKwik Of India Looks To Go Public

Mobile wallet and payments app MobiKwik of India has looked in recent years to take on multinational rivals on its home turf, expand internationally and take advantage of the rise of mobile payments.

Now, it is setting its sights on going public. MobiKwik is out to have an initial public offering (IPO) of stock this fall that could net between $200 million and $250 million, sources told Bloomberg.

MobiKwik plans to file its draft IPO prospectus by May for an offering in Mumbai. Bloomberg sources, who asked not to be identified because the information is private, said the value of the company could be more than $1 billion.

To kick-start the IPO, the Gurgaon-based company intends to have another funding round. A representative for MobiKwik declined to comment.

The company’s website said it is a top FinTech platform in India, “operating businesses in consumer payments, financial services and payment gateway” that offers a digital credit card for millions of Indians. “Founded in 2009 by Bipin Preet Singh and Upasana Taku, the company has raised $110M in funding from marquee investors.”

The company added that its “payments network is one of the largest in India with 120 million users, 3 million merchants” and more than 300 “billers. The company has pre-approved 20 million users for its digital credit card,” a Buy Now Pay Later “BNPL” product.

As a whole, India’s consumer market has been a cash-based one.

Firms eyeing India will find that the pandemic has somewhat loosened this tradition. Mobile apps are more and more important in facilitating domestic sales between businesses and consumers in the nation, Karthik Raghupathy, head of business development and strategy at PhonePe, told PYMNTs. Phone Pe is an eCommerce payment system and digital wallet provider.

Demographic groups that have traditionally been slower to adopt payment apps, such as older or less-wealthy consumers, are now testing out these tools. As a result, retailers are responding with new products.