Two investors who’d committed to investing in MobiKwik’s public issue have pulled out,&nbsp;according to two people directly aware of the development. The two investors are&nbsp;Eastspring Investments and Nomura. This is bad news for the digital payments company&nbsp;and puts a spanner in its long-in-the-works IPO plans.&nbsp;While it could not independently verify why the investors pulled out, one of the two&nbsp;people cited above said that investors aren’t hot on the company’s ability to compete and&nbsp;grow in the crowded fintech space. Plus, the fairly expensive valuation.&nbsp;2/7“The valuation has already dropped to $950 million post from $1.2 billion post but looks&nbsp;like it may go lower,” says the person cited above; both individuals asked not to be named. “The IPO has not been called off yet. The sticking point is the last placement to ADIA, or&nbsp;the Abu Dhabi Investment Authority, was at $750 million. They don’t want to do a down&nbsp;round so it is still stuck at $800 million pre-money or $1 billion post.”According to the report by&nbsp;themorningcontext, With anchor investors turning hesitant, MobiKwik’s investment bankers have their task&nbsp;cut out for the next few weeks—addressing investor concerns, assuring them of a robust&nbsp;stock price (yet to be announced) and the long-term demand from local investors. This is&nbsp;easier said than done because a significant chunk of domestic funds and fintech sector&nbsp;allocation money from foreign institutions has been soaked up by Paytm’s IPO, which&nbsp;leaves little or no room for MobiKwik. If the road show and investor meets do not allay&nbsp;fears, the listing could be postponed or worse, called off. If the listing is delayed, the company will have to return to the drawing board and shore&nbsp;up its business and finances, which as things stand today are not in the best health. A far&nbsp;bigger cause of worry is the fallout for the fintech ecosystem.&nbsp;<div> </div>

Two investors who’d committed to investing in MobiKwik’s public issue have pulled out, according to two people directly aware of the development.