Upcoming FinTech IPOs in India: InMobi, PineLabs and PhonePe

Background: Opportunity for India
1) India’s stock mcap is 4th highest at $5.5 trillion.
2) Several Indian companies domiciled in more business friendly countries such as Singapore are returning back.
3) Muted IPO Market of Singapore (6 IPOs raising $32.5 million in 2023 while India $7.9 billion).
4) Failed US SaaS Listing - Freshworks.
5) But don’t forget failed performance of One97 communication (PayTm) listing.

InMobi’s IPO: India's First Unicorn
1) Incorporated in Singapore in 2007 to have a strong investor base.
2) India’s first VC born unicorn - SoftBank Group - in 2011.
3) InMobi is shifting its corporate base to India in early 2025, so that it can start an IPO.
4) Competes with Meta and Alphabet for ad sales.
5) Seeked to listing valued at $15 billion in US, before covid.
6) May seek a $10 billion valuation in India - expect mid to late 2025.
7) Sales were stagnant at $268 million in FY23 w.r.t FY22.

Pine Labs IPO: Asian digital payments provider
1) Backed by Peak XV Partners and Mastercard.
2) Serves more that 5 lakh merchants in Middle East and South Asia.
3) Provides solution for payments and other financial services.
4) Enterprise Customers: Sony, BMW and Samsung
5) Looking to raise $1 billion in an IPO with a valuation of $6 billion.
6) Confidentially filed with US SEC for an IPO in 2022.
7) May issue primary and secondary shares.
8) May do a pre-IPO fundraising round ahead of any listing.

PhonePe: Walmart Backed Flipkart IPO possible too
1) With 51% market share in the industry, PhonePe eyed an IPO in 2021 but realised: It will take a while for Indian market to appreciate pre-profit listings at high valuations.
2) PayTM’s $2 billion IPO with a $20 billion valuation .
3) Walmart has crossed mcap of $500 billion and are strong on cash.
4) It will like to see other FinTech’s list first and test PhonePe’s IPO.
5) Given the right scenarios, we might see a Flipkart’s IPO.