MobiKwik IPO to create seven crorepati executives

By Debjyoti Roy

  • 21 Sep 2021
Credit: VCCircle

The initial public offering (IPO) of digital payments firm MobiKwik will create seven crorepati employees with a net worth of at least Rs 10 crore ($1.3 million) each, the company said on Tuesday.  

The company added that, besides them, 128 employees will become millionaires in rupee terms. 

The firm reserved 4.5 million equity shares for creating a pool of ESOPs (employee stock ownership plans). The shares when fully diluted sum up to 7% shareholding in the company. 

The company claims that most other internet firms that are lining up for stock market debut have allocated shares for employees which are less than 2% of their shareholding. 

MobiKwik last raised a Series G round of $20 million from Abu Dhabi Investment Authority (ADIA) at a per-share value of Rs 895.80 per share. This implies a 600% gain on average for the employees on their ESOPs (even at the last round price).   

The cumulative wealth creation for the employees currently stands at $40.7 million. 

The firm, backed by Sequoia Capital and Bajaj Finance, had filed for an IPO of up to Rs 1,900 crore ($255 million) in July this year. 

MobiKwik competes with the likes of Paytm which is aiming to become a super app and planning to raise Rs 16,000 crore from the primary markets.