The IPO includes the issue of new shares worth 15 billion rupees and an offer for the sale of shares worth up to 4 billion rupees, diluting the stakes of its two founders and current investors including Sequoia Capital, Bajaj Finance and American Express .
MobiKwik, which could list on a bourse in as early as two weeks, is eyeing a valuation of up to $1.7 billion in the IPO, one of the sources told Reuters.
MobiKwik did not respond to a request for comment.
It has hired ICICI Securities, BNP Paribas, Credit Suisse, IIFL Securities and Jefferies as book managers for the IPO.
MobiKwik, headquartered on the outskirts of capital New Delhi, was founded over a decade ago by the husband and wife duo of Bipin Preet Singh and Upasana Taku. It currently offers several financial services, runs a digital wallet, allows payments for utilities and also provides services such as 'buy-now-pay-later'.
Indian stock markets have hit an all time high this year, which has also seen many tech startups vying to list publicly. Food delivery firm Zomato kicked off the startup listing boom earlier this year while several other firms are preparing for an IPO.
MobiKwik's bigger rival Paytm is also planning to raise $2.3 billion via an IPO, Reuters reported previously.
($1 = 74.9775 Indian rupees)
(Reporting by Sankalp Phartiyal; editing by Jason Neely and Kim Coghill)
By Sankalp Phartiyal