Perhaps we will finally see a fintech IPO in 2024 | Tech Crunch

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Welcome to TechCrunch Fintech (formerly Interchange)! We're back after a hiatus, and judging by the volume of pitches I received last week, I can tell you that venture investing in the fintech space is definitely picking up. This week, we look at Plaid's latest move towards an IPO, a BNPL company's financial results and more. Let's dive in!

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Big story

This past week, Plaid announced the appointment of its first president. Notably, former Cloudflare chief product officer Jen Taylor has a lot of experience taking a private company public — something we expect Plaid to do in the relatively near future. Coincidentally, I am already working on “Here are the fintech startups that could go public in 2024”. With the help of F-Prime Capital, I compiled a list of fintechs that have the potential to go public quickly. Klarna, Chime, Stripe are just a few of them.

Analysis of the week

Speaking of public companies, buy-now, pay-later outfit Affirm released its earnings last week. Despite the 48% higher revenue of $591 million compared to estimates of $521 million, investors remained cautious. After a 7% run-up on Thursday, Friday fell nearly 11% to close at $43.86. However, it is important to note that this is not the case that That's off Affirm's 52-week high and nearly double what it was trading at in November. In general, public fintechs fared better last year. According to an email from F-Prime Capital, “Total market cap rose from $389B in December 2022 to $573B by year-end 2023 — but fell to a peak of $1.3T in September 2021.

dollars and cents

Ingrid took a big hit with the news that Entrust is acquiring AI-based ID verification startup Onfido for over $400 million.

New Unicorn Alert! Accounting software startup Pennylane has become France's latest unicorn with a €40 million funding round, reports Romain.

Meanwhile, Christine reports that another accounting startup has — finally — raised $10 million in equity funding. The Miami-based latter aims to help businesses automate accounting and finance functions.

ICYMI: Spend management startup Ramp has acquired AI-powered startup Venue, which will expand its procurement offering, and Metronom's usage-billing software in AI is a hit as the startup raises $43 million in fresh capital.

What else are we writing?

Reliance Industries spinoff Jio Financial Services has rubbished “speculative” media reports that it is not in talks with Paytm to buy its wallet business, as the firm scrambles to put out the fire from the central bank's clampdown last week.

An Indian parliamentary panel has urged the government to support the growth of domestic fintech players that can provide alternatives to Walmart-backed PhonePe and Google Pay apps, which currently command more than 83% of the country's digital payments market.

PayPal is working on a new consumer app for its mobile customers and has indicated it will be “ready” to take advantage of a new EU regulation, the Digital Markets Act (DMA), when it comes into force next month for tech “gatekeepers”. Like an apple.

Don't miss Tage's deep dive into how African startups are tackling a variety of issues plaguing fintechs in more mature markets like the UK and US

Highlights of high interest

Kin Insurance Raises Growth with $15M in Funding

Construction insurance tech startup Shepherd secures $13.5M Series A funding round

RealReports Raises $2M in Seed Funding

Pagaya will secure a $280 million credit facility for AI-powered consumer financial products

Navro gets EMI license and raises $14 million to revolutionize global payments

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