MobiKwik to raise $20 mn pre-IPO round from Abu Dhabi Investment Authority

Gurugram headquartered One MobiKwik Systems, which operates digital payments platform MobiKwik, is set to raise Rs 149 crore ($20 million) from United Arab Emirates based sovereign wealth fund Abu Dhabi Investment Authority (ADIA) as it prepares for a public offering this year. 

MobiKwik, in filings made with the Registrar of Companies, said it has received an investment proposal from ADIA which will be used to meet its existing and future operational requirements. The company issued one equity share and 83,165 compulsory convertible cumulative preference shares (CCCPS) at Rs 17,916 per share to ADIA to complete the transaction. 

The proposal was approved by the MobiKwik board at a meeting held on June 04, 2021. 

According to digital news publication Entrackr, MobiKwik had raised $5 million in April and $7 million in March from a slew of investors including Gaurav Dubey, Vijay Kedia, Bharat Vinod Daftari, Elizabeth Matthew, Leposhe Trading Enterprises, Mauryan First, and Orios Select Fund. 

Previously in December last year, it bagged about $1.5 million from Infosys co-founder Kris Gopalakrishnan’s family office Pratithi. Hindustan Media Ventures, the investment arm of HT Media which publishes TechCircle, had made a $5.5 million investment in the company in November 2020. Its other investors include Sequoia Capital India, MediaTek, and media companies NDTV and Bennett Coleman and Company Limited (BCCL). 

These transactions are being touted as a pre-IPO round. During the announcement of the tranche from HT Media, co-founder Upasana Taku said that the company would be raising a total of Rs 120-150 crore by early 2021 with plans to take the company public in 12 months. 

Founded in 2009 by Taku and Bipin Preet Singh, Mobikwik provides financial services, including digital wallet, lending, insurance, investments in mutual funds, gold and payment gateway. It started a wealth management business in 2018 with the acquisition of Clearfunds and added insurance products to its offerings in 2019.