A little over two years after scrapping its IPO plan, unicorn fintech firm One MobiKwik Systems Ltd has again filed papers for an initial share sale to raise up to Rs 700 crore.

However, the amount to be raised through the initial public offering (IPO) is way lower than Rs 1,900 crore it had proposed when it filed the draft papers in July 2021.

One MobiKwik Systems, a firm backed by Peak XV Partners, is now looking to mop up Rs 700 crore through a fresh issue of shares, according to the Draft Red Herring Prospectus (DRHP) filed on Thursday.

The company may consider a pre-IPO placement of its securities worth up to Rs 140 crore. If such a placement is undertaken, the size of the fresh issue will be reduced.

Going by the draft papers, the proceeds from the fresh issue to the tune of Rs 250 crore will be used for funding growth in the financial services business and Rs 135 crore for the payment services business.

Further, Rs 135 crore for investment in data, machine learning and artificial intelligence, and product and technology, Rs 70.28 crore for capital expenditure for the payment devices business, and general corporate purposes.

The offer is being made through the book-building process, wherein not less than 75 per cent of the issue will be available for allocation to qualified institutional buyers.

Not more than 15 per cent of the offer will be available for allocation to non-institutional investors, and not more than 10 per cent of the issue will be available to retail individual bidders, according to the DRHP. The company had withdrawn the earlier IPO draft papers in November 2021 citing weak market conditions.

MobiKwik, the company’s flagship application, provides consumers access to various payment options and financial products in digital credit, investments, and insurance.

Co-founded by Bipin Preet Singh and Upasana Taku in 2009, the firm’s primary goal is to use technology to enhance financial inclusion for the underserved population in India.

The firm caters to businesses and merchants with extensive payments and financial services such as online checkout, Kwik QR scan and pay, MobiKwik Vibe (Soundbox), MobiKwik EDC machine, and merchant cash advance.

PTI