Could 2024 be the year for fintech IPOs? Perhaps, according to F-Prime Capital's State of FinTech 2024 report.
F-Prime – VC firm with $4.5 billion in assets under management Tracks the performance of emerging, publicly traded and privately held financial technology companies – Naturally bullish on the fintech space, note: “In total, fintech companies capture <10% of financial services revenue, although many scaled private fintech companies generate $1B+ in revenue, are still growing rapidly, and are expected to list on public markets.
“Many large companies are now filing or considering going public,” F-Prime said.
To be clear, when F-Prime refers to fintech, it conflates financial technology and crypto/blockchain startups. Here at TC, we tend to separate our coverage of the two, although crypto arguably falls under the fintech umbrella. However, for the purposes of this article, we're going to focus on some non-crypto focused companies that have the potential to go public this year.
Whether any of these companies actually sink remains to be seen; Needless to say, we're excited to file an S-1 to give us more insight into how much money these companies are really making (or not).
As Dallas Innovates reported last December, “After two years of trying to go public through a SPAC merger that valued it at $4.7 billion post-money, Apex is looking to do it the old-fashioned way with a direct SEC filing…THe said in a confidential filing with the stock trade clearinghouse SEC that “the total number of shares to be offered and the price range for the proposed offering have not yet been determined.”
In January 2023, Geeta was reported to exist She has given herself 12 months to go publicPursuing a transaction such as through a direct listing or through a fundraising program and tender offer in the private market.
Well, it's been 12 months and we haven't heard anything about the IPO. But the payments giant raised more capital last year. Last March, Stripe announced it had raised more than $6.5 billion in Series I funding at a $50 billion valuation. It was previously valued at $95 billion, giving it the status of one of the most valuable privately held fintech companies in the world. In November 2022, Stripe laid off 14% of its staff, or about 1,120 people. But fintech branches continue to thrive. Last June, TechCrunch reported that Stripe had acquired a (non-fintech!) startup and announced it would expand its issuing product into credit.
Swedish fintech Klarna confirmed to TechCrunch last November that it was “eventually moving towards an IPO”. According to a Klarna spokesperson, the company said it has initiated a process for legal entity restructuring to establish a holding company in the United Kingdom. There was movement A positive third trimester In which Klarna turned a profit and reported 30% higher revenue of nearly $550 million. The creation of a new legal entity at the top of the company's corporate structure will enable it to more easily list on the stock exchange, the spokesperson said. Its recent valuation $6.7 billionThis is down 85% from a It boasts a valuation of $45.6 billion A year before.
Lendbuzz, a fintech company applying artificial intelligence to offer auto loans to people with no credit history, announced in December that “Appointed investment banks for IPO It will be valued at more than $2 billion,” Reuters reported. In June 2021, TechCrunch reported Has an auto finance platform Raised $300 million and $60 million in debt financing in funds.
Chim has been rumored to be eyeing the public markets for some time. Once valued At $25 billionAt the beginning of Neobank, As TickerNerd reported, “all were set for a March 2022 debut at a valuation between $35 and $45 billion,” but then the markets changed. By November 2022, the company has announced it will lay off 12% of its workforce, or about 160 people. Recent reports have pegged the company's valuation Close to $6.7 billionAnd Chime is likely to decide to take the plunge this year Determined for market entry At the end of 2023 according to Investing.com.
Last October, TechCrunch reported It has a plaid Hired former Expedia CFO Eric Hart serving as its first chief financial officer — typically a key step for a private company headed for the public markets. Today, the company announced that it has hired Jenn Taylor, Cloudflare's chief product officer. to serve as its first president. When asked if the move was the company's plans to go public, a spokesperson told TechCrunch: “I can confirm that an eventual IPO is a milestone we're tracking, but we don't have any details or a timeline to share beyond that.” Plaid started as a company that connects consumer bank accounts to financial applications. , but is gradually expanding its offerings to offer a full-stack onboarding experience.Visa bought it for about $5.3 billion before regulators put the brakes on that deal — some call it a blessing in disguise.
The HR Tech Space Too hot, too fast, and these three companies are the hottest in the space. Waves last March could do Access $500 million in fresh funding As SVB dissolves. Last June, Gusto said in its most recent fiscal year (12 months ending April 30, 2023) Generated more than $500 million in revenue. In January 2023, it revealed that the deal would reach $295 million in annual recurring revenue (ARR) by the end of 2022. By November, that number was reported reached $400 million. Interestingly, Ripling has talked about its competition with two other companies. At TechCrunch Disrupt in 2022, CEO Parker Conrad talked about the fact that Rippling. Entering the territory of the deal. Even as of 2020, Rippling has gone wild A billboard Stating: “Growing enthusiasm? Presto change-o.”
The expense management space is another crowded one, with multiple players clamoring for market share, including Brex, Ramp, Airbase, Navan (formerly TripActions) and Mesh Payments. So far Navan has gone alone Confidential Filing for IPO – With a value of $12 billion. But, that was in September 2022 and we haven't really heard anything on that front since then. Last December, the company 5% of its staff were laid off Or 145 people. breaks, Whatever Valued at $12.3 billion Two years ago, Has two rounds Removals over the past 18 months, and is reportedly working to reduce its cash burn. Ramp raised $300 million 28% lower value of $5.8 billion last August. No staff has been fired so far. CEO and co-founder Eric Glyman recently told TC when asked about the IPO plans The company is “excited to eventually explore the IPO process, but doesn't have an active timeline around it.”
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