Gurugram-based digital payment company MobiKwik has reportedly turned unicorn following a secondary Employee Stock Ownership (ESOP) sale round led by a former head of Blackstone India, Mathew Cyriac. The company’s employees exercised their ESOPs recently by selling part of their shares in a secondary sale.
The transaction in the round valued the company at approximately USD 1 billion, with Cyriac topped up his shareholding at almost double its previous price, cited sources with reliable information.
For the record, MobiKwik was assessed at USD 720 million in May 2021, after UAE’s sovereign wealth fund, Abu Dhabi Investment Authority purchased a stake worth USD 20 million in the company.
Under its ESOP 2014 scheme, the company has reserved approximately 4.5 million equity shares to create a reserve of ESOPs for eligible employees.
Chairperson, COO, and Co-founder of MobiKwik, Upasana Taku was quoted saying that the number of equity shares generated from the full exercise of options granted is approximately 7% of the fully diluted outstanding shares.
MobiKwik has also received approval from the Securities and Exchange Board of India (SEBI) to launch an initial public offering (IPO) through which it plans to secure USD 252 million approximately.
Out of the total sum, approximately USD 199.23 million will be garnered from fresh issue of shares. Meanwhile, stocks worth USD 53.12 million will be offloaded by existing shareholders through the offer-for-sale (OFS) route.
The company had filed a Draft Red Herring Prospectus (DHRP) for the IPO with SEBI in July 2021. As per the draft, MobiKwik had more than 101.37 million registered users and over 3.44 million offline, online, and biller merchant partners as of March 31, 2021.
The Indian digital payment company is reportedly eyeing an IPO valuation of USD 1.5 billion to USD 1.7 billion and is anticipated to hit markets before November 4, 2021.