Fintech soonicorns prepare IPOs, await right launch time

Revival of growth, slow private funding, and investor pressure for exits driving listing plans

- Mansi Verma

Strike while the iron is hot—that seems to be the mantra of a cohort of mid-stage fintech startups that is getting IPO-ready in a jittery stock market, hoping to seize the moment when a favorable window opens up. Fintech startups—especially those valued at under $1 billion and often referred to as soonicorns—Turtlemint, KreditBee, and Kissht, are preparing for public listings, undeterred by market volatility or the lackluster performance of some previous tech company listings, Mint has learnt.

Leading fintech stocks have declined sharply over the past month. While the broader sentiment remains cautious, driving these planned listings are returning sectoral growth after regulatory crackdown, slow private funding, and, in some cases, investor pressure for exits, experts told Mint.

"More fintech companies with sub-$1 billion valuations are exploring IPOs, largely driven by great valuations received for IPOs in the last couple of years in India, along with the option for retaining a controlling stake, which is unlikely if the investors exit through a sale to a strategic investor," said Shoubhik Dasgupta, fintech specialist and partner at Pioneer Legal.