Popular fintech startup Mobikwik has filed its DRHP with the Securities and Exchange Board of India. The company has further mentioned its reservation of 7% equities for employee stock options. ADIA (Abu Dhabi Investment Authority) earlier valued the startup at $700 million. This came after the company raised $20 million in June.
The startup says that through the ESOPs, employees will get higher returns.
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Know the Details
Mobikwik co-founder, COO, and chairperson said that this six times increase in ESOP value has produced employee wealth. She further mentioned that all these are results of the immense employee trust. In addition, the company’s partnership-like approach has also contributed towards this factor.
Wondering what exactly are employee stock options?
Well, they are a type of reward provided to the employees by their organisation. Here, employees are provided with the option to buy the company’s shares. They can buy such shares at a given price for a given period of time.
In a statement, Mobikwik mentioned that its programme would retain, reward and recruit employees in this over-competitive employment market.
This fintech startup further stated that 20% of the grants were sanctioned during its DRHP filing in July. Moreover, the firm also plans to raise as much as Rs. 1900 crores through its IPO.
According to Mobikwik’s DRHP, it will raise Rs. 1500 crores through a primary share sale. It will raise the remaining amount through a secondary transaction. Here, existing investors will take part in selling their stake portions.
The substantial fundraising that it received in July was at a valuation of Rs. 895.80 per share. This particular round resulted in a total valuation of around $720 million. Further, as per sources, Mobikwik will be looking for a valuation of nearly $1 billion for its IPO.
Now, rooting this new valuation, 7 of Mobikwik’s employees possess Rs. 10 crores worth stock options.
That’s not all!
As many as 31 employees have Rs. 1 crore each for themselves. The company also stated that 118 employees have witnessed stock options crossing Rs. 10 lakh.
This rather newly found tech startup, which is only 12 years old, has bagged its name into the growing list of prominent internet firms. These include Paytm, Nykaa, CarTrade, Policy Bazaar, etc.
As of now, Sequoia Capital owns 17.2%, while Bajaj Finance holds a 13.8% stake in the company. In addition, Bennett, Coleman, and Co. Ltd holds a 1.08% stake in Mobikwik.
Newly found companies consider stock options extremely popular. They use them to retain and attract added talents. Moreover, the demand for ESOPs has increased over the past few months, most probably due to the elevated sequence in startup valuations.
Furthermore, Mobikwik has witnessed immense growth due to its employee strength over the years. As a result, it has become a leading fintech player in the Indian market. As the company continues to impose leadership and market presence, rewarding their employees is extremely valuable.
Frequently Asked Questions
- When is Mobikwik IPO open date?
Mobikwik IPO is most likely to open in September 2021.
- What is the parent organisation of Mobikwik?
One Mobikwik Systems Limited is the company’s parent organisation.
- Who is the registrar of this IPO?
This IPO’s registrar is Link Intime Pvt. Ltd.