MobiKwik shifts Rs 60.85 crore IPO proceeds to lending unit

ONE MOBIKWIK SYSTEMS LIMITED, referred to as MobiKwik, reallocated Rs 60.85 crore of initial public offering, or IPO, proceeds to its wholly owned subsidiary MobiKwik Distribution Services Private Limited to operate as a lending service provider. The shareholder-approved allocation was fully utilised by 30 September 2026, according to the company’s unaudited consolidated results approved on 2 November 2026.

Why did MobiKwik revise its IPO-use allocation?

MobiKwik revised its IPO-use allocation after shareholders approved a special resolution through a postal ballot whose remote e-voting concluded on 2 July 2026. The revision carved out Rs 60.85 crore from the original financial-services organic-growth objective and designated it as an equity investment in MobiKwik Distribution Services Private Limited, formerly MobiKwik Credit Private Limited.

The original allocation for organic growth in financial services was Rs 150 crore. Under the revised plan, Rs 89.15 crore remained allocated to organic financial-services growth and Rs 60.85 crore was assigned to the subsidiary investment, leaving the combined financial-services-related allocation unchanged at Rs 150 crore. By 30 September 2026, MobiKwik reported full utilisation of both the Rs 89.15 crore organic-growth amount and the Rs 60.85 crore investment amount.

MobiKwik completed its IPO in December 2024 through a fresh issue of 2,05,01,792 equity shares with a face value of Rs 2 each at an issue price of Rs 279 per share. Its shares listed on BSE Limited and the National Stock Exchange of India Limited on 18 December 2024, while revised net IPO proceeds in the utilisation table stood at Rs 534.434 crore.

How will MobiKwik use Rs 60.85 crore in its lending subsidiary?

MobiKwik used the Rs 60.85 crore as an equity investment in MobiKwik Distribution Services Private Limited, its wholly owned subsidiary, to operate as a lending service provider, or LSP. The filing does not identify lending products, lending partners, customer volumes, revenue targets or individual deployment items associated with the Rs 60.85 crore investment.

The funding revision followed a transfer of the LSP business undertaking to MobiKwik Distribution Services Private Limited on a slump-sale basis. The transfer took effect on 18 August 2026 under a Business Transfer Agreement dated 22 May 2026, during the period ended September 2026.

MobiKwik said the transfer was within the group and was therefore not disclosed as discontinued operations in the consolidated financial results. The group reports one operating segment, financial and payment services, so the filing does not provide separate consolidated revenue, expenses or profit for the LSP operation or its subsidiary.

What other IPO allocations did MobiKwik change?

MobiKwik also reallocated Rs 33.65 crore from capital expenditure for its payment-devices business to organic growth in payment services, specifically to grow its offline merchant business. The payment-services allocation rose from Rs 135 crore in the prospectus to Rs 168.65 crore, while the payment-devices capital-expenditure allocation fell from Rs 70.285 crore to Rs 36.64 crore.

By 30 September 2026, MobiKwik had used Rs 140.89 crore of the Rs 168.65 crore payment-services allocation, leaving Rs 27.76 crore. It had used Rs 21.15 crore of the Rs 36.64 crore payment-devices allocation, leaving Rs 15.49 crore, separating planned spending on offline merchant growth from spending on payment devices.

Research and development, covering data, machine learning, artificial intelligence, product and technology, remained allocated Rs 107 crore. MobiKwik had used Rs 105.15 crore of that amount by 30 September 2026, leaving Rs 1.85 crore, while the general-corporate-purposes allocation increased to Rs 72.144 crore from Rs 68.232 crore.

How much of MobiKwik’s IPO proceeds remained unused?

MobiKwik had Rs 49.012 crore of revised net IPO proceeds unutilised at 30 September 2026 after using Rs 485.422 crore from total revised proceeds of Rs 534.434 crore. The unused balance was spread across payment services, research and development, payment-device capital expenditure and general corporate purposes.

The company revised IPO expenses to Rs 37.557 crore from its original estimate of Rs 41.483 crore. It said Rs 35.155 crore of total IPO expenses, net of taxes, was adjusted against securities premium, while the Rs 39.12 lakh reduction in estimated IPO expenses was added to net proceeds and earmarked for general corporate purposes.

The table also records Rs 39.12 lakh unutilised under general corporate purposes, completing the Rs 49.012 crore balance at 30 September 2026. In contrast, neither the Rs 89.15 crore financial-services organic-growth allocation nor the Rs 60.85 crore lending-subsidiary investment had an unutilised balance.

When must MobiKwik complete the revised IPO objectives?

MobiKwik extended the utilisation timelines for revised Object 1 and Object 3 to 31 March 2027. Revised Object 1 covers organic growth in financial services and had an allocation of Rs 89.15 crore, while Object 3 covers research and development in data, machine learning, artificial intelligence, product and technology and had an allocation of Rs 107 crore.

The extension did not create additional allocations beyond the revised IPO plan. As of 30 September 2026, the Rs 89.15 crore financial-services organic-growth allocation had already been fully used, while Rs 1.85 crore remained unutilised under research and development and was therefore still relevant to the 31 March 2027 timeline.

Conclusion

MobiKwik retained the Rs 150 crore overall allocation connected with financial services but changed its structure through the shareholder-approved revision. Of that amount, Rs 60.85 crore became a fully utilised equity investment in MobiKwik Distribution Services Private Limited for LSP operations, while Rs 89.15 crore remained allocated to organic growth in financial services. A separate Rs 33.65 crore moved from payment-device capital expenditure to payment services for offline merchant-business growth.

The next disclosed milestone is 31 March 2027, the extended utilisation date for revised financial-services growth and research-and-development objectives. MobiKwik’s subsequent disclosures can show deployment of the Rs 49.012 crore unused IPO balance at 30 September 2026, including Rs 27.76 crore for payment services, Rs 15.49 crore for payment devices, Rs 1.85 crore for research and development and Rs 39.12 lakh for general corporate purposes.