Mobikwik, a digital payments startup, filed a draught red herring prospectus (DRHP) with capital markets regulator Securities and Exchange Board of India on Monday in order to raise Rs 1,900 crore ($255 million) through an initial public offering.

According to the DRHP, approximately Rs 1,500 crore will be raised through a primary share sale, with the remainder raised through a secondary transaction in which existing investors will sell stakes.

Sequoia Capital India, Bajaj Finance, American Express, Cisco, and the Abu Dhabi Investment Authority are among the investors in the firm, which was founded in 2009 by Bipin Preet Singh and Upasana Taku.

Singh and Taku intend to sell shares worth more than Rs 191 crore in the secondary market, according to the DRHP.

Mobikwik's two founders own 34.5 percent of the company. Sequoia Capital India and Bajaj Finance intend to sell shares worth approximately Rs 95 crore and Rs 69 crore, respectively. The remaining investors intend to sell stakes as part of the offer for sale.

The Gurgaon-based startup, which was valued at $700 million in its previous equity funding round in April, when it raised Rs 150 crore ($20 million), is aiming for a public market valuation of $1 billion (Rs 7,459 crore), according to sources familiar with the matter.

Mobikwik's spokesperson could not be reached for comment right away.
The 12-year-old startup joins a growing list of consumer internet companies aiming for stock market debuts this year, including Zomato, Paytm, Nykaa, and PolicyBazaar.

Unlike startups such as Zomato and Paytm, which plan to list as a "publicly managed company," Mobikwik stated in the DRHP that it will list as a "professionally managed company." Sequoia Capital India owns 17.2 percent of the company, while Bajaj Finance owns 13.8 percent. Bennett, Coleman and Company Ltd owns 1.08 percent of the company.

“Our board has authorised the offer and the fresh issue... Our shareholders have authorised the offer pursuant to their resolution dated July 7,” Mobikwik said in the draft prospectus.

“Our company, in consultation with the book running lead managers, may consider a pre-IPO placement of such number of equity shares for cash consideration aggregating up to Rs 400 crore, at its discretion, prior to filing of the red herring prospectus with the Registrar of Companies,” the company added.