Truecaller IPO: Swedish Caller ID Service Aims for $100M+

Truecaller Announces Plans for Nasdaq Stockholm IPO

Truecaller, the company behind the well-known caller identification application, announced on Wednesday its intention to raise $116 million through an initial public offering (IPO) on Nasdaq Stockholm.

Valuation and Timeline

The Stockholm-based company, established 12 years ago, anticipates a valuation of approximately $3 billion during the IPO process. Earlier reports from local media outlets indicated this target valuation.

The company has stated its goal is to complete the listing procedure by the fourth quarter of the current year.

Growth and User Base

Truecaller currently boasts a substantial user base of 278 million monthly active users. India represents the company’s largest market in terms of user numbers.

Preparations for this IPO have been underway for at least two years, as previously discussed with Truecaller co-founder and CEO Alan Mamedi by TechCrunch.

Investment History

Among the firm’s early investors are prominent venture capital firms Sequoia Capital and Atomico. Over the years, the company has secured over $95 million in funding, according to data from Crunchbase.

Six years prior, Truecaller explored raising an additional $100 million at a $1 billion valuation, as reported by TechCrunch, but this potential deal ultimately did not come to fruition.

Statements from Leadership

Alan Mamedi released a statement on Wednesday, expressing excitement about the IPO. He noted that preparing for the IPO was a key objective this year.

“A listing of Truecaller is not only a milestone for Nami [the other co-founder], myself and all of our employees who have contributed to building Truecaller to the fantastic platform that it is today, but also to the growing Swedish tech ecosystem,” Mamedi stated.

He further added, “Even though we are 12 years into our incredible journey, we believe that this is just the beginning and we have a clear strategy to continue to grow and develop our services and products. I look forward to welcoming existing and new shareholders on this journey.”

Service and Market Position

Truecaller’s core service empowers users to identify and avoid unwanted calls, including spam, and also filters unwanted text messages.

While mobile operating systems like those from Apple and Google have enhanced their caller ID features and implemented measures to reduce spam calls, Truecaller’s capabilities continue to be highly regarded.

The service is particularly popular in regions like India, where users frequently receive a high volume of spam calls each month.

Financial Performance and Expansion

The company’s operating revenue reached $57 million in 2020, a significant increase from $22 million in 2018.

In recent years, Truecaller has expanded its offerings to include financial services, specifically within the Indian market.

Sequoia Capital India’s Exit

This IPO represents another public exit for Sequoia Capital India this year, following exits from companies like Zomato and Indigo Paints.

Investor Perspective

Shailesh Lakhani, Managing Director at Sequoia Capital India, commented, “Truecaller has made communication smarter, safer and more efficient across the world.”

He continued, “As smartphone usage increases globally, fraud and unwanted communication has followed, and Truecaller has turned into an indispensable platform for consumers and businesses. With a clear focus on innovation and growth, Truecaller is on an exciting journey to reach even more users with even better products.”