Sequoia-backed Truecaller to list on NASDAQ Stockholm; looks to raise $116M via IPO

Truecaller, which has 278 million users globally, is looking to go public. The caller identification service plans to list Class B shares on NASDAQ Stockholm by the end of 2021.
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Caller identification service Truecaller is preparing to list on NASDAQ Stockholm in the fourth quarter of 2021, the company announced on Wednesday.

The Stockholm-headquartered company — which counts India as its largest market with over 200 million MAUs — is looking to raise $116 million (1 billion Swedish crowns) through the IPO to ramp up operations in existing territories and expand to new ones.

Truecaller is seeking a $3 billion post-IPO valuation. The company will offer Class B shares to: a) the general public in Sweden; and b) institutional investors in Sweden and abroad, it revealed. Truecaller counts 278 million MAUs in 175 countries.

Alan Mamedi, Founder and CEO, Truecaller, said in a statement:

"One of our objectives this year has been to prepare Truecaller for an IPO. Thanks to the strong feedback that we’ve received from potential investors, it feels very exciting to take the next step in this process. A listing of Truecaller is not only a milestone for Nami [Zarringhalam], 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."

"Even though we are 12 years into our journey, we believe 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," he added.

Alan Mamedi and Nami Zarringhalam, Truecaller co-founders

Founded in 2009, Truecaller is backed by marquee investors, including Sequoia Capital India, Atomico, OpenOcean, and Kleiner Perkins.

At present, employees own about 10 percent of company stock. Following the listing, founders Nami and Alan will control a majority of the company's voting power due to their ownership of Truecaller’s high-vote Class A shares.

"Truecaller intends to use the net proceeds from the offering to position the company for future growth, for general corporate purposes, and to provide strategic flexibility for opportunistic acquisitions," the statement added.

Shailesh Lakhani, Managing Director, Sequoia Capital India, said,

“Truecaller has made communication smarter, safer, and more efficient across the world. 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, it is on an exciting journey to reach even more users with even better products.”

Truecaller further shared that since launch, its app has been downloaded 581 million times (97 percent of which were organic downloads). The service has managed to identify and block 30 billion unwanted calls

"High brand recognition and a position as the third-largest communication platform in India drives demand for Truecaller’s mobile advertising platform, enabling brands to communicate directly with millions of users each day," the company revealed.

Bing Gordon, Chairman of the Board of Directors, Truecaller, added, “To list the company and broaden the shareholder base is a natural next step for its development. The Board of Directors is proud to have supported the founders and the employees who are developing the platform to help more people and companies focus on who and what’s really important. I am certain that Truecaller is just getting started.”

Edited by Suman Singh