MobiKwik’s IPO runs into trouble

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Editor's note: Two investors who’d committed to investing in MobiKwik’s public issue have pulled out, according to two people directly aware of the development. The two investors are Eastspring Investments and Nomura. This is bad news for the digital payments company and puts a spanner in its long-in-the-works IPO plans.  While we could not independently verify why the investors pulled out, one of the two people cited above said that investors aren’t hot on the company’s ability to compete and grow in the crowded fintech space. Plus, the fairly expensive valuation.  “The valuation has already dropped to $950 million post from $1.2 billion post but looks like it may go lower,” says the person cited above; both individuals asked not to be named. “The IPO has not been called off yet. The sticking point is the last placement to ADIA, or the Abu Dhabi Investment Authority, was at $750 million. They don’t want to do a down round so it is still stuck at $800 million pre-money or $1 billion post.” In May 2021, MobiKwik raised $26.7 million from ADIA and several …