Nium on track for US IPO in 2 years

Singapore-based payments firm Nium Pte has set its sights on breaking even within the next two years, positioning itself for a potential initial public offering (IPO) in the United States by the second quarter of 2025. This optimistic outlook serves as a positive signal for Southeast Asia’s struggling startup ecosystem.

Nium, currently valued at approximately $2 billion, plays a crucial role in assisting companies with payment processing, similar to its larger US counterpart, Stripe Inc. Despite the challenges faced by Southeast Asia’s tech and startup industries due to rising interest rates and inflation, Nium managed to double its revenue to $82 million last year.

Prajit Nanu, the co-founder and Chief Executive Officer of Nium, highlighted the company’s strategic acquisitions as a key factor in its growth. Over the past two years, Nium expanded rapidly by acquiring London-based Ixaris, Singapore’s SoCash, and Wirecard Forex India Pvt.

Nanu expressed confidence that Nium will achieve break-even status within the next 12 months and aims to be profitable before going public. He stated, “We should be ready for an IPO by the end of next year, and then start looking at how the market is in 2025. No one can time the market, but the focus for us over the next 18 months is to be fully prepared.”

As part of its growth strategy, Nium intends to explore potential acquisition targets in regions like Latin America, Africa, and the Middle East. The company has allocated $50 million in cash reserves to fund two to three payment startups acquisitions over the next year.

With backing from influential investors such as Singapore sovereign wealth fund GIC Pte, Temasek Holdings Pte, and California-based Riverwood Capital LLC, Nium remains committed to expanding its global footprint. The company has established a broad clientele, including prominent names like Thailand’s Kasikornbank Pcl and Singapore Telecommunications Ltd.

Nium’s software solutions have been instrumental in enabling businesses to accept online payments while facilitating seamless money transfers and issuing virtual and physical credit cards. Operating across more than 20 offices worldwide, the company boasts a diverse team of over 1,000 employees.

Temasek, along with its subsidiary Vertex Holdings, holds a significant stake in Nium, being the company’s largest shareholder with ownership exceeding 20%.

Nium’s journey began in 2014 when Prajit Nanu, drawing from his experiences building businesses in Mumbai, co-founded the cross-border remittance service. His inspiration stemmed from personal challenges encountered while trying to send money from India to Thailand in 2013, a process plagued by complexities and hurdles.

As Nium continues to forge ahead, the company’s commitment to innovative solutions and expansion is set to leave a mark on the evolving landscape of the digital payments industry.