Mobikwik is raising $100 million to expand its team

Mobikwik, a Gurugram-based fintech firm, has temporarily shelved its plans for an initial public offering (IPO) in favour of raising $100 million from a variety of investors. The cash will be used by the digital payments company to not only hire new employees, but also to expand its business and improve its marketing tactics and goals. According to Bloomberg, the investment round’s valuation has yet to be released. Mobikwik, which was co-founded by Upasna Taku, CEO, was able to secure $20 million in funding from the Abu Dhabi Investment Authority (ADIA) in June 2021, at a valuation of $700-$750 million.

To date, the company has reportedly raised $176 million. The thirteen-year-old fintech firm operates a platform that offers a variety of financial services such as credit, insurance, gold loans, and mobile recharges.

It had planned to conduct its initial public offering (IPO) in the first quarter of this year, but it has been postponed due to market uncertainties. Sequoia Capital, Treeline Asia, Cisco Systems, American Express, and Bajaj Finance are among the existing investors that would sell a portion of their shares in the IPO, which Mobikwik wants to garner around Rs 1,900 crores. Employee stock options will make many Mobikwik employees wealthy as a result of the IPO. In the IPO, the company has set aside around 7% of its equity for ESOPs. Many of its employees are valued Rs 1 crore or more, with some even exceeding Rs 10 crore.