Posted: 10:33 PM PST · December 5, 2024
Image Credits: Dhiraj Singh / Bloomberg / Getty Images
Manish Singh
MobiKwik, an Indian financial services startup, has cut the size of its planned initial public offering (IPO) for the third time. The company is setting a price band of ₹265 to ₹279 ($3.1 to $3.3), which values it at $250 million, down sharply from its last private valuation of $924 million in 2021.
Background
MobiKwik, based in Gurugram, India, is one of the most widely used mobile wallet apps in the country. The company has struggled to maintain relevance after a government-backed protocol, Unified Payments Interface (UPI), saw broader adoption. Despite this challenge, MobiKwik has managed to raise over $268 million to date.
IPO Details
The IPO opens on December 11, and the stock will start trading on December 18. The company is seeking to raise about $69 million in the IPO, well below the initial target of $255 million set back in 2021.
Why the Reduced Valuation?
MobiKwik’s reduced valuation can be attributed to several factors:
- Changing Market Conditions: The Indian fintech market has undergone significant changes since MobiKwik’s last private valuation. The rise of UPI and other payment systems has increased competition for mobile wallet apps.
- Regulatory Environment: Government regulations and policies have also impacted the company’s growth prospects.
- Industry Trends: Shifts in consumer behavior, such as the increasing adoption of digital payments, have affected MobiKwik’s business model.
MobiKwik’s Plans
The company plans to use the proceeds from the IPO to fund its growth and invest in artificial intelligence (AI). With a user base of 161 million and over 4.26 million merchants, MobiKwik is well-positioned to capitalize on the growing demand for digital financial services.
Key Statistics:
- User Base: 161 million
- Merchants: Over 4.26 million
- Funding Raised: Over $268 million
Conclusion
MobiKwik’s reduced IPO valuation reflects the challenges faced by Indian fintech startups in adapting to changing market conditions and regulatory environments. Despite these hurdles, the company remains committed to investing in AI and growing its user base.
Related Topics:
- Fintech
- India
- IPOs
- MobiKwik
- Startups
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