Paytm's listing creates havoc for fintechs; Mobikwik delays IPO as investors back off

Paytm's debut disappointment is spreading to the rest of the fintech startup ecosystem looking to step into Dalal Street. Mobikwik, which was looking to open its IPO in November, could delay it to the next financial year, as reported by Economic Times.

The report said that the company finds it difficult to get institutional investors and moreover, its valuation has seen a dip of 30-40%. This as Paytm's listing has created a lot of skepticism around the fintech business in India.

A report by The Morning Context said that two investors who had committed to investing in Mobikwik's public issue have pulled out. These two investors are Nomura and Eastspring Investments.

Paytm has eroded Rs 50,000 crore in its valuation in just two trading sessions after listing. Ironically, the listing was aimed at raising Rs 18,000 crore.

Also read/watch: Paytm lacks focus and direction, expect more downside says Macquarie