Nium decreases worth by 30% in fundraising cycle, sets sights on IPO in 2025.
In Amsterdam, the Netherlands, fintech startup Nium announced on Wednesday that it successfully secured $50 million in new funding from investors and is eyeing an initial public offering within the next year and a half.
The funding efforts were spearheaded by an undisclosed Southeast Asian sovereign wealth fund and supported by notable venture capital entities including BOND, NewView Capital, and Tribe Capital.
This financing round positions Nium’s valuation at $1.4 billion, signifying a 30% reduction from its previous valuation of $2 billion achieved in 2022 during its last external venture capital raise.
Prajit Nanu, the CEO and founder of Nium, expressed intentions to utilize the newly acquired capital to intensify mergers and acquisitions activities, specifically targeting other payment firms in the growth stage.
Nanu attributed the company’s lower valuation to a broader downturn in the public market valuations of fintech firms.
Path to IPO within 18 months
Despite the decreased valuation, Nanu remains positive about Nium’s growth trajectory and is optimistic about the firm’s upcoming public offering within the next year and a half, aiming for a listing in either the third or fourth quarter of 2025.
He emphasized that the valuation does not overly concern him and that the share pricing during the IPO will be adaptable given the inherent volatility of markets.
Nanu cited the case of Stripe, which initially attained a $95 billion valuation in 2021 before adjusting to $50 billion and ultimately reaching $65 billion in later share transactions.
Lack of Interest in Cryptocurrency
Regarding potential acquisitions, Nanu indicated a lack of enthusiasm for companies in the cryptocurrency sector, citing the absence of significant merchant demand for crypto as a payment mode.
“It’s in the nascent stages of infrastructure development,” stated Nanu. “Ultimately, Nium acts as a layer above numerous banks worldwide.”
He added, “Banks have shifted from being attracted to crypto, then away from it, and back again. There’s no one-size-fits-all approach.”
Despite notable surges in cryptocurrency values like bitcoin, which have surged due to renewed investor interest following the approval of spot bitcoin exchange-traded funds in the U.S., Nanu underscored his focus on traditional payment methods.
