Truecaller files for $116 million IPO in NASDAQ, Sweden

One of the most popular caller identification services, Truecaller, has filed for $116 million IPO (equivalent to Swedish Kroner 1 billion) on NASDAQ Sweden. What is unique about Truecaller is that despite being a global company, it counts India among its top markets. For the last reported full year, Indian market accounted for 69% of the revenues of Truecaller and so India continues to be one of most lucrative markets for Truecaller.

The IPO of Truecaller will be a combination of fresh fund raising and an offer for sale. Truecaller was founded in 2009 by Mamedi and Zarringhalam. It counts investors like Sequoia Capital, Atomico and Kleiner Perkins among its early investors. Some of the existing shareholders will be offering their Class-B shares as part of the OFS. The two founders will retain their control post-IPO, due to their holding in Class-A shares.

Some of the numbers are stunningly tilted towards India.

Out of its 278 million monthly active users spread across 175 countries, Truecaller has nearly 205 million monthly active users in India alone. Most of its employees are concentrated in Sweden, India and in Kenya. Currently, while Sequoia is the largest shareholder in Truecaller with 19.9% stake, the two promoters Mamedi and Zarringhalam own 9.2% each in Truecaller.

The importance of Truecaller offering has become more significant in recent times with new types of frauds and identity thefts being perpetrated through smart phones. Truecaller is becoming an indispensable platform for individuals and for businesses. It will also look to expand its product offering base. Truecaller will use proceeds of the fresh issue to trigger future growth opportunities via organic and inorganic route. Of course, the listing will also given them currency for future growth.

The India business of Truecaller generated revenues $39.7 million in the full year 2020, which represents nearly 70% of the total revenues of Truecaller globally. That shows why India is central to Truecaller. India reported 79% growth in top line yoy and a 67% growth in operating income on yoy basis.

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