Mobikwik bags Rs 50 Cr debt funding from BlackSoil Capital ahead of IPO: Report

Mobile payments startup MobiKwik is reportedly set to raise Rs 50 crore in debt funding from BlackSoil Capital via non-convertible debentures (NCD).

MobiKwik's Board passed a special resolution to issue 1,000 NCDs at an issue price of Rs 5 lakh each to raise Rs 50 crore, Entracker reported citing data from Registrar of Companies (RoC).

This comes as the Gurugram-based fintech plans to raise Rs 700 crore via initial public offering (IPO), with no offer-for-sale component, as per a revised draft red herring prospectus (DRHP) filing with the Securities and Exchange Board of India (SEBI). It had previously filed for a Rs 1,900 crore issue in 2021.

MobiKwik had earlier stated that it would consult with the book-running lead managers on issuing additional specified securities, such as private placement, preferential allotment, rights issue, or any other method, totalling Rs 140 crore as a "pre-IPO placement." Should this placement proceed, it mentioned that the size of the fresh issue would be reduced accordingly.

Earlier, in 2022, the company had raised small amounts of debt in tranches. According to two separate RoC filings, MobiKwik had raised a total debt of Rs 55 crore since August 2022 from BlackSoil and Bengaluru-based alternative investment fund, Karnation.

The Board at MobiKwik had passed a resolution to allot 900 NCDs in two separate tranches of 700 and 200, respectively, at an issue price of Rs 5 lakh each to raise Rs 35 crore and Rs 10 crore from BlackSoil.