Will 2024 be the year of fintech IPOs? According to F-Prime Capital's State of Fintech 2024 report, that possibility is quite high.
F prime — VC firm with over $4.5 billion in assets under management Track the performance of emerging public and private financial technology companies. Unsurprisingly, he remains bullish on the fintech space, saying:Although fintech companies collectively capture less than 10% of financial services revenue, many large private fintech companies have revenues of more than $1 billion, are still growing rapidly, and are It is expected to be listed on the market. ”
“Many major companies are currently applying to go public or are considering going public,” F-Prime says.
To be clear, when F-Prime refers to fintech, it lumps together financial technology and crypto/blockchain startups. Here at TC, we have tended to separate our coverage of the two, but there is no doubt that cryptocurrencies fall under the umbrella of fintech. However, in this article, we will only focus on some of the non-crypto-specific companies that may go public this year.
It remains to be seen whether any of these companies will actually make this decision. I would be happy if even one of these companies would file an S-1 to gain deeper insight into how much money these companies are actually making (or not making). I have to say.
vertex
As Dallas Innovates reported last December, “Two years after attempting to go public via a SPAC merger valued at $4.7 billion post-money, Apex is attempting to go public the old-fashioned way by filing directly with the SEC. There is…T”“The total number of shares to be offered and the price range for the proposed offering have not yet been determined,” the stock trading clearing company said in a confidential SEC filing.
stripe
In January 2023, Stripe Set a 12-month deadline for listingpursue transactions through direct listings or in private markets such as fundraising events and tender offers.
Well, it's been 12 months and we haven't heard anything about the IPO. But the payments giant raised even more funding last year. Last March, Stripe announced it had raised more than $6.5 billion in Series I funding at a valuation of $50 billion. The company was previously valued at $95 billion, establishing itself as one of the world's most valuable privately held fintech companies. Stripe laid off approximately 1,120 people, or 14% of its workforce, in November 2022. But fintech continues to expand. Last June, TechCrunch reported that Stripe announced it was acquiring a (non-fintech!) startup and expanding its issuing offerings into credit.
Klarna
Swedish fintech company Klarna confirmed to TechCrunch in November that it was taking steps “toward an eventual IPO.” A Klarna spokesperson said the company had begun a corporate restructuring process to establish a holding company in the UK “as an important early step” in its initial public offering plans.This move was followed by Positive in 3rd quarter In this case, Klarna posted a profit, reporting a 30% increase in revenue to approximately $550 million. The creation of a new legal entity at the top of the company's corporate structure will make it easier to list on the stock exchange, the spokesperson added. Its latest valuation is $6.7 billion85% less than before. It boasted a valuation of $45.6 billion. one year ago.
(Photo by Noam Galai/Getty Images for TechCrunch)
Lendbuzz
Lendbuzz, a fintech company that uses artificial intelligence to provide car loans to people with no credit history, announced in Decemberhired an investment bank for the IPO Its value could be more than $2 billion,” Reuters reported. In June 2021, TechCrunch reported: Auto finance platform has $300 million in debt financing, $60 million raised In fundraising.
chime
Rumors have been swirling for some time that Chime was eyeing the public market.once cherished 25 billion dollarsneobanks were initially As TickerNerd reports, it was “scheduled to debut in March 2022 at a staggering valuation of $35 billion to $45 billion,” but the market has since turned around. The company announced that it would lay off 12% of its workforce, or approximately 160 people, by November 2022.Recent reports have fixed the company's valuation. nearly $6.7 billionand it's possible that Chime will decide to take the plunge this year. Plan to enter the market According to Investing.com, it is scheduled for the second half of 2023.
Image credits: F-Prime Capital
Plaid
Last October, TechCrunch reported: I had the plaid pattern. Hiring former Expedia CFO Eric Hart Serving as the first chief financial officer is typically an important step for private companies transitioning to the public markets. Today, the company announced that Jen Taylor, Cloudflare's chief product officer, has been arrested. Become the first president. When asked if this move meant the company was planning to go public, a spokesperson told TechCrunch: More than that. ” Plaid started as a company that connected consumers' bank accounts to financial applications, but has since gradually expanded its services to provide a more full-stack onboarding experience. Before it could hit the brakes, it was almost acquired by Visa for $5.3 billion, which some might call a blessing in disguise.
Image credits: Ross Marlowe/TPG for TechCrunch
Ripple/Gust/Deal
of HR tech space These three companies are among the hottest names in this space.Ripples last March I was able to do Secured $500 million in new funding Because SVB was starting to melt. Last June, in Gusto's most recent financial year (12 months ending April 30, 2023), It had revenue of over $500 million. In January 2023, Deal revealed that it had achieved annual recurring revenue (ARR) of $295 million by the end of 2022. By November, that number reportedly had increased. reached $400 million. What's interesting is that Rippling has been vocal about its rivalry with the other two companies. At TechCrunch Disrupt 2022, CEO Parker Conrad said Rip Ring Invading the realm of deals. Even back in 2020, Rippling went after Ghast. signboard “Have you surpassed Gusto? Presto Change O.”
Brex/Lamp/Navan
The spend management space is also a crowded space with multiple players vying for market share, including Brex, Ramp, Airbase, Navan (formerly TripActions), and Mesh Payments.So far, only Navan has made it this far. Apply for an IPO confidentially — The valuation is $12 billion. But that was in September 2022, and we haven't heard anything in that regard since then. In December last year, the company lay off 5% of employees, Or 145 people. Brex, which one Valued at $12.3 billion Two years ago, There were 2 rounds dismissal It has reportedly been working to reduce its cash burn over the past 18 months.lamp raised $300 million Last August's valuation was 28% lower at $5.8 billion. So far, no employees have been laid off. When asked about IPO plans, CEO and co-founder Eric Greiman recently told TC: The company said it is “excited to eventually explore an IPO process, but there is no active timeline for it.”
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