Towards 2022, hopes were high that a number of companies that had waited a long time for their liquidity moment would finally go public. Names like Chime, Stripe, Instacart, Egnyte, Databricks and others. You could also throw in Figma (expected nine-figure revenue in 2021) and Picsart (run rate over $100 million) into the mix.
Hell, Reltio and Clio recently hit $100 million ARR, and there were plenty of other names we could have put on an IPO list for the current year if the market had held out a few more quarters.
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But of course that hasn’t happened, and with fintech valuations pumping new depths, compressing multiples of software revenue, delivery models handling a more IRL user base, and the like, we’ve seen an effective freeze of all IPO activity by tech companies. with material business support.
And yet we have tech IPO cooking. It’s not what you expected. Say hello to Starbox Group Holdings, which is looking to raise approximately $23 million at a valuation of approximately $200 million.
Unfamiliar with the Cayman-based, Malaysia-focused business? We neither. Let’s take a quick look at the numbers and then complain about the current state of the IPO market – as it is.
Thank you Starbox
Bellwethers come in different intensity levels. If Chime were to go public in the third quarter, it would be a critical event for venture-backed fintech valuations, and especially for the neo-banking subcategory that has attracted huge sums of capital and consumer interests around the world.
Starbox isn’t much of a bellwether, as it’s both small and relatively unknown; it doesn’t seem likely that a large number of startups will be subjected to the results. Still, the company’s IPO could offer some signal about the current state of the technology debuts in the United States, which would be welcome.
When you die of thirst, you don’t look at the label on the water bottle on the floor. You just drink it. So let’s turn the cap and take a look.
Starbox describes itself as an “ecosystem for cash discounts, digital advertising and payment solutions”, which didn’t quite cross our minds as a compelling statement. Diving into the company’s files, it turns out this is the model: