Tech Startups
Tech Startups

French Tech Startup Said to Begin Early IPO Preparation

TECH DIGEST – Back Market, a French technology firm looking to capitalize on the growing demand for used electronics, has begun early work on a prospective initial public offering. According to the people, who asked not to be identified because the conversations were private and involved sensitive information, the company, which runs a marketplace for refurbished smartphones and other consumer gadgets, has had informal discussions with banks about a prospective listing.

Although it hasn’t established a specific timetable for the potential share sale, Back Market is thinking about going public as early as next year, according to the sources. It aims to value the company higher than the $5.7 billion it received in its $510 million financing round this year. The people stated that because discussions are still in the early stages, Back Market may decide to delay making an offering in order to acquire additional money from private investors. An IPO is not the company’s “top goal in the foreseeable future,” according to a Back Market official, but the company is aiming to enhance its financial and legal procedures.

Due to a high decline in values, particularly for publicly traded tech equities, large European startups are increasingly avoiding the IPO market. Listings have become more difficult as a result of investors’ increased risk aversion brought on by rising inflation and the prospect of a recession. According to statistics obtained weighted by offer size, technology businesses that completed IPOs in Europe last year have since declined an average of 42% from their offer prices. The numbers reveal that in the first half of this year, there were almost half as many new listings as there were in the equivalent period in 2021.

The number of “circular economy” businesses that let customers acquire used things has increased recently. Grover, a German subscription platform for consumer technology, raised money in April at a valuation of more than $1 billion. The first unicorn in Lithuania and pre-owned clothing app Vinted collected money from investors last year at a pre-money valuation of 3.5 billion euros. Investors including Goldman Sachs Group Inc., General Atlantic, Eurazeo SE, and Generation Investment Management sponsored investment for Back Market.

 
VISIT OUR OTHER WEBSITES
PRNigeria.com EconomicConfidential.com Hausa.PRNigeria.com
EmergencyDigest.com PoliticsDigest.ng TechDigest.ng
HealthDigest.ng SpokesPersonsdigest.com TeensDigest.ng
ArewaAgenda.com Hausa.ArewaAgenda.com YAShuaib.com