Peak XV exits One MobiKwik Systems in Rs 130 crore block deal: Report

Venture capital firm Peak XV Partners, formerly Sequoia Capital India & South East Asia, exited Indian fintech company One MobiKwik Systems through a block deal worth more than Rs 130 crore ($13.76 million) on Tuesday, Reuters reported, citing a source with direct knowledge of the matter.

Peak XV sold around 60.8 lakh shares, representing nearly 7.7% equity in the company, at an average price of Rs 214 per share, the source said. The price is at a 4.88% discount to the previous closing price of Rs 225 on the BSE.

Investment firms Florintree Advisors, Viridian Asset Management, Dymon Asia and Karma Capital were among the buyers in the deal, the news report stated. Peak XV had been an early institutional investor in One MobiKwik, and the latest transaction marks its complete exit from the fintech company, the source added.

Shares of One MobiKwik Systems rallied as much as 8% to their day’s high of Rs 243 on the BSE on Tuesday, extending gains for a second consecutive session and rallying 20% over the same period.

The sharp surge in One MobiKwik share price comes after the company announced that the Reserve Bank of India (RBI) has approved its application for a Non-Banking Financial Company (NBFC) licence, marking a key milestone in its efforts to strengthen its financial services business.

The licence will allow the launch of a new lending arm, MobiKwik Financial Services Private Limited (MFSPL), a wholly owned subsidiary of the group. Through this entity, the company plans to expand its regulated lending capabilities, introduce innovative credit products, and serve a wider base of consumers and merchants with greater efficiency and control.The development is in line with the group’s long-term strategy of building a full-stack fintech platform focused on accessible, responsible and technology-driven financial products.The NBFC will build on the group’s existing strengths, including a customer base of more than 186 million users, a trusted brand, and strong technology infrastructure along with risk underwriting and collections capabilities.

MFSPL, the group’s in-house NBFC, is expected to help launch new credit products with faster go-to-market execution, offering both secured and unsecured lending solutions to consumers and MSMEs in underserved geographies. Operations will begin after receipt of the Certificate of Registration (CoR) from the RBI upon fulfilment of certain conditions.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)