MobiKwik has got clearance from market regulator Securities and Exchange Board of India (SEBI) to undertake an initial public offering (IPO) in which it aims to raise up to Rs. 1,900 crores, Mint and Moneycontrol have reported quoting sources. 

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The IPO involves the issuance of new shares worth Rs. 1,500 crores, as well as an offer for sale (OFS) of shares worth up to Rs. 400 crores, reducing the holdings of its two founders and present investors, which include Sequoia Capital, Bajaj Finance, and American Express. In July, the Gurgaon-based firm filed the Draft Red Herring Prospectus (DRHP) for the Initial Public Offering (IPO) with Sebi.

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American Express Travel Related Services Company Inc, Bajaj Finance, Cisco Systems (USA) Pte Ltd, Sequoia Capital India Investment Holdings III, Sequoia Capital India Investments IV, Tree Line Asia Master Fund (Singapore) Pte Ltd, and the company’s promoters, Upasana Taku and Bipin Preet Singh, will sell shares through the IPO.

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The proceeds from the new share issuance will be used to finance organic and inorganic growth plans, as well as general company objectives. MobiKwik announced last month that its listing will give generous benefits to its employees through the employee stock ownership plan (ESOP).

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MobiKwik Systems is India’s leading mobile wallet (MobiKwik Wallet) and Buy Now Pay Later (BNPL) provider. By integrating the ease of everyday mobile payments with the benefits of Buy Now Pay Later, the firm aims to solve the unmet credit needs of fast-growing online transactors.

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According to a recent Credit Suisse report, MobiKwik has evolved from a wallet provider to a provider of a broader range of financial solutions to its 120 million consumers and 3 million merchants. It now offers UPI, more than 200 billers, and cross-sells loans, insurance, and investment goods. Its intention to list also coincides with the filing of documents by larger competitor Paytm to raise $3 billion at a $30 billion valuation in what might be India’s biggest IPO ever.