MobiKwik, a leading Indian financial services startup, has significantly reduced the size of its planned initial public offering (IPO), valuing the company at $250 million. This marks a substantial decrease from its $924 million private valuation in 2021.

The Gurugram-based fintech firm, backed by prominent investors Peak XV and ADIA, is now seeking to raise approximately $69 million in the IPO, a far cry from its initial target of $255 million in 2021. The IPO is set to open on December 11, with listing scheduled for December 18.

MobiKwik, founded 15 years ago, operates one of India's largest mobile wallet apps, boasting an impressive user base of 161 million and serving 4.26 million merchants. Despite its significant presence in the Indian fintech landscape, the company has struggled to maintain its relevance in recent years, particularly after the government-backed Unified Payments Interface (UPI) gained traction.

The startup has raised over $268 million in funding to date, but its growth has been hindered by the increasing competition in the digital payments space. MobiKwik's decision to downsize its IPO is seen as a strategic move to adapt to the shifting market dynamics and investor sentiment.

According to the company's filings, the proceeds from the IPO will be utilized to fuel its growth and artificial intelligence (AI) investments. This move is expected to help MobiKwik regain its momentum and stay competitive in the rapidly evolving fintech ecosystem.

The reduced IPO size and valuation have sparked interest among industry observers, who are closely watching the company's progress. MobiKwik's ability to navigate the challenging market conditions and emerge as a leading player in the Indian fintech space will be crucial in determining its long-term success.

As the Indian fintech landscape continues to evolve, MobiKwik's IPO will be a significant milestone, providing valuable insights into the company's prospects and the broader industry trends. With its listing set for December 18, all eyes will be on MobiKwik as it embarks on this new chapter in its journey.