Figma aims at $16.4 billion valuation ahead of IPO on NYSE
The San Francisco-based design software company, together with some of its investors, plans to raise as much as $1.03 billion by offering nearly 37 million shares priced between $25 and $28 each, according to a statement released Monday.
This IPO marks a key moment for Figma, coming more than a year after its $20 billion proposed acquisition by Adobe was blocked due to regulatory concerns in the UK and Europe.
The broader market's recent rebound and successful IPOs like that of Circle have renewed optimism around tech listings. Figma's upcoming debut has already drawn attention, partly due to its pro-bitcoin stance and social media buzz. As of March 31, it had $70 million invested in Bitwise's bitcoin ETF and plans to invest an additional $30 million, its filing shows.
The company will list under the ticker symbol "FIG", with Morgan Stanley, Goldman Sachs, Allen & Co., and J.P. Morgan managing the offering. Figma was last valued at $12.5 billion in a 2024 secondary share sale involving early investors and employees.
Figma offers a collaborative design platform used to build websites, applications, and user interfaces, with clients including SAP, Workday, and ServiceNow. The company saw a 46% increase in revenue and a threefold jump in net income in Q1 2025.
Venture capitalist Tomasz Tunguz praised Figma's product-led growth model, noting that its collaborative features promote viral user adoption and sales efficiency. CEO Dylan Field has also suggested the company is open to bold acquisitions that may seem unconventional at first glance.
However, the IPO comes amid changing industry dynamics. While Figma is investing in AI, it acknowledges that AI-powered design tools could reduce customer dependence. The company also pointed to restrictive immigration policies as a hiring challenge and warned of potential global demand risks tied to tariffs and economic uncertainty.
Corporate attorney Leslie Marlow noted that in this evolving environment, investors are prioritizing firms with strong financials and clear paths to profitability.
(With inputs from Reuters)
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
NDTV
35 minutes ago
- NDTV
Trump's Golden Dome Defense System Looks For Alternative To Musk's SpaceX
Washington: The Trump administration is expanding its search for partners to build the Golden Dome missile defense system, courting Project Kuiper and big defense contractors as tensions with Elon Musk threaten SpaceX's dominance in the program, according to three sources familiar with the matter. The shift marks a strategic pivot away from reliance on Musk's SpaceX, whose Starlink and Starshield satellite networks have become central to US military communications. It comes amid a deteriorating relationship between Trump and Musk, which culminated in a public falling-out on June 5. Even before the spat, officials at the Pentagon and White House had begun exploring alternatives to SpaceX, wary of over-reliance on a single partner for huge portions of the ambitious, $175 billion space-based defense shield, two of the sources said. Musk and SpaceX did not respond to requests for comment. After Reuters reported initially that SpaceX was a frontrunner to build parts of Golden Dome, Musk said on X that the company had "not tried to bid for any contract in this regard. Our strong preference would be to stay focused on taking humanity to Mars." Due to its size, track record of launching more than 9,000 of its own Starlink satellites, and experience in government procurement, SpaceX still has the inside track to assist with major portions of the Golden Dome, especially launch contracts, sources say. Project Kuiper, which has launched just 78 of a planned constellation of 3,000 low-earth orbit satellites, has been approached by the Pentagon to join the effort, signaling the administration's openness to integrating commercial tech firms into national defense infrastructure and going beyond traditional defense players. Jeff Bezos, Amazon's executive chairman, told Reuters in January that Kuiper would be "primarily commercial," but acknowledged "there will be defense uses for these [low-earth orbit] constellations, no doubt." A spokesperson for Project Kuiper declined to comment for this story. The Pentagon declined to comment. The White House did not respond to requests for comment. Golden Dome's ambitions mirror those of Israel's Iron Dome - a homeland missile defense shield - but a larger, more complex layered defense system requires a vast network of orbiting satellites covering more territory. In the search for more vendors for the satellite layers of Golden Dome, "Kuiper is a big one," a US official said. While SpaceX remains a frontrunner due to its unmatched launch capabilities, its share of the program could shrink, two of the people said. Officials have reached out to new entrants like rocket companies Stoke Space and Rocket Lab are gaining traction and will be able to bid on individual launches as the program matures, according to the US official. Later in the development of Golden Dome "each individual launch is going to get bid, and we have to actually give bids to other people," besides SpaceX, the official said. Need For Satellites There is an urgent need for more satellite production. Last year Congress gave Space Force a $13 billion mandate - up from $900 million - to buy satellite-based communication services in what was widely seen as one of many efforts to stimulate private sector satellite production. Amazon's Project Kuiper, a $10 billion initiative led by former Starlink managers dismissed by Musk for slow progress, Reuters has reported, has lagged behind SpaceX in deployment. But its potential defense applications - such as communications that could aid missile tracking - have drawn renewed interest as the administration prepares to allocate the first $25 billion tranche of funding authorized under Trump's sweeping tax and spending bill. Traditional defense giants Northrop Grumman, Lockheed Martin, and L3Harris are also in talks to support Golden Dome. L3Harris CFO Kenneth Bedingfield told Reuters in an interview the company has seen a surge in interest in its missile warning and tracking technologies, which are expected to play a key role in the system. Northrop, meanwhile, is pursuing several efforts including a space-based interceptor, a component that would enable missile strikes from orbit, Robert Flemming, the head of the company's space business, told Reuters in an interview. "Lockheed Martin is ready to support Golden Dome for America as a proven mission partner," Robert Lightfoot, president of Lockheed Martin Space, said in a statement. Golden Dome's initial outreach this spring invited smaller, newer Silicon Valley firms seen as nimbler, more sophisticated and potentially less expensive alternatives to the big defense firms to the table - but that was before the Musk-Trump feud upended that calculus. Several with close ties to Trump aside from SpaceX, including Palantir and Anduril - were considered early frontrunners to win big pieces of the $175 billion project. But the Musk-Trump feud has reshaped the competitive landscape. Musk recently launched the "America Party," a tech-centric, centrist political movement aimed at defeating Republicans who backed Trump's tax-and-spend agenda. Rapid Timeframe Trump launched the Golden Dome initiative just a week into his second term, pushing for rapid deployment. Space Force General Michael Guetlein, confirmed by the Senate on July 17, is set to lead the program with sweeping authority. Under a previously unreported directive from Defense Secretary Pete Hegseth, Guetlein has 30 days from confirmation to build a team, 60 days to deliver an initial system design, and 120 days to present a full implementation plan, including satellite and ground station details, two people briefed on the memo said. The inclusion of commercial platforms like Kuiper raises security concerns. Its satellites would need to be hardened against cyberattacks and electronic warfare, a challenge that has plagued even SpaceX's Starlink network. In May 2024, Elon Musk said SpaceX was spending "significant resources combating Russian jamming efforts. This is a tough problem." Beyond the technical and political challenges, Golden Dome could reshape global security dynamics. A fully operational space-based missile shield may prompt adversaries to develop new offensive capabilities or accelerate the militarization of space.
Time of India
an hour ago
- Time of India
Private banks' yields on advances dip on faster rate transmission
Private banks recorded a sharper fall, primarily because they have a higher share of loans priced on the external benchmark linked rate (EBLR) in their portfolio. EBLR adjusts more rapidly to policy changes than the marginal cost of funds-based lending rate (MCLR), the benchmark that most PSB loans are linked to. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads MUMBAI: Private sector banks have been quicker than their public sector counterparts in passing on the Reserve Bank of India's policy rate cuts to on loans for private banks dropped by 20-83 basis points (bps) in the quarter ended June 30 from three months prior. For public sector banks (PSBs), the decline was limited to 2-22 bps, based on the quarterly financial statements of central bank has cut policy repo rate by 100 basis points since February, with three-fourths of this reduction being done in the April-June banks recorded a sharper fall, primarily because they have a higher share of loans priced on the external benchmark linked rate (EBLR) in their portfolio. EBLR adjusts more rapidly to policy changes than the marginal cost of funds-based lending rate (MCLR), the benchmark that most PSB loans are linked 87% of private banks' floating rate loans are on EBLR as of the end of March 2025, compared with 46% for state-run banks, according to the RBI data. The share of loans linked to MCLR, where transmission works with lag effect and depends on the fall in incremental cost of deposits, is 12% for private banks and 49% for banks also saw a 0-20 bps decline in deposit costs during the quarter, whereas PSBs reported a relatively modest drop of 6-15 bps, the June-quarter numbers HDFC Bank , the cost of funds fell by about 10 bps, while loan yields declined by 20-22 bps. About 70% of the loan book of the country's largest private sector bank is linked to EBLR; the remaining is MCLR-based."These (EBLR-based) are floating-rate loans, so they reprice faster than the cost of funds," said HDFC Bank chief financial officer Srinivasan Vaidyanathan. "We manage our cost of funds by competitively pricing our savings and time deposits. The market hasn't fully priced in the 100-bps reduction in the policy rate between February and June. New deposit renewals will come in at lower rates." ICICI Bank reported a 33-bps sequential drop in loan yields to 9.53%. Axis Bank 's cost of funds came in at 5.39%, down 11 bps quarter-on-quarter and five bps year-on-year. The cost of deposits declined by 12 bps, while loan spreads narrowed by 13 bps."We've demonstrated disciplined increases in cost of funds over the last eight quarters," Axis Bank managing director and chief executive Amitabh Chaudhry said. "Our confidence in the franchise has allowed us to take proactive steps on savings and term deposit rates, resulting in an 11-bps sequential drop in cost of funds." Yes Bank saw its loan yields decline by 20 bps sequentially to 9.9%, with a corresponding fall in deposit costs to 5.9%. The bank's overall cost of funds fell by 10 bps to 6.3%. "The rate cut we implemented on savings account balances helped us align our deposit costs with the decline in loan yields," MD and CEO Prashant Kumar said, adding: "While we expect continued pressure on loan yields due to the repo rate cut, our focus remains on mitigating the impact."According to Saurabh Bhalerao, associate director at CareEdge Ratings, while private banks are seeing upfront pressure on margins mainly because of EBLR loans and competition, it will play out over the next two-three quarters for PSBs as MCLR rates fall with a lag. "Banks would try to make up for the pressure on NIMs (net interest margins) by managing the spreads as well as the cost of funds," he said.
Mint
an hour ago
- Mint
App Store overhaul may save Apple from daily EU fines: Here's how
Apple's recent overhaul of its App Store policies appears set to gain approval from European Union antitrust regulators, according to individuals familiar with the matter, potentially shielding the tech giant from steep daily penalties,reported Reuters. Advertisement Reportedly, the iPhone maker introduced a revised fee structure last month in response to pressure from the European Commission, which had previously imposed a €500 million fine for breaching the bloc's Digital Markets Act (DMA). The Commission had accused Apple of limiting developers' ability to inform users about alternative, potentially cheaper, payment options outside the App Store. Under the new framework, developers making sales through the App Store will be charged a 20 per cent processing fee, with small businesses benefiting from a reduced rate of 13 per cent. Meanwhile, those directing users to external payment methods will face fees ranging from five per cent to 15 per cent. Apple will also allow developers to include multiple links guiding users to third-party payment platforms, an option previously restricted. Advertisement Also Read | Apple Arcade to introduce four new games on 7 Aug, including a Worms Spinoff The reforms come after EU authorities gave the company a 60-day window to comply with the DMA or risk punitive fines. Had Apple failed to act, it could have faced daily charges of up to five per cent of its global turnover, equivalent to roughly €50 million per day. While the European Commission has not yet issued a final verdict, sources suggest a green light could be granted in the coming weeks. However, the regulator has indicated it is still carefully reviewing the proposed measures. 'All options remain on the table. We are still assessing Apple's proposed changes,' a Commission spokesperson said. Apple has maintained that its actions are aimed at complying with EU law and avoiding further penalties, though it has publicly criticised the Commission for seeking to dictate how it manages its digital marketplace. Advertisement (With inputs from Reuters)
