Here are the fintech startups that could go public in 2024 (2024)

Could 2024 be the year of fintech IPOs? It’s very possible, according to F-Prime Capital’s State of Fintech 2024 report.

F-Prime— a venture capital firm with more than $4.5 billion in assets under management that tracks the performance of emerging, publicly traded and privately held fintech companies: Naturally, he remains bullish on the fintech space, noting that: “Collectively, fintech companies have captured <10% of financial services revenue, however, many large-scale private fintech companies are generating revenues of over $1 billion, continue to grow rapidly, and are expected to listed on public markets.”

“Many major companies are filing or considering going public,” says F-Prime.

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, although cryptocurrencies arguably fall under the fintech umbrella. However, for the purposes of this article, we will focus only on some of the non-cryptocurrency-focused companies that have the potential to go public this year.

It remains to be seen if any of these companies actually take the plunge; We have to say, we’d love for even just one to file that S-1 to give us a better idea of ​​how much money these companies are (or aren’t) really making.

Appendix

As Dallas Innovates reported last December, “two years after attempting to go public via a SPAC merger that valued it at $4.7 billion after money, Apex is looking to do it the old-fashioned way with a direct SEC filing.” …TThe stock settlement firm filed a confidential filing with the SEC, saying that “the total number of shares to be offered and the price range for the proposed offering have not yet been determined.”

Stripe

In January 2023, Stripe was reported to have A period of 12 months was set to go public.either through a direct listing or to conduct a private market transaction such as a fundraising event and tender offer.

Well, it’s been 12 months and we haven’t heard anything about an IPO. But the payments giant raised more capital last year. Last March, Stripe announced that it had raised more than $6.5 billion in Series I funding at a valuation of $50 billion. It had previously been valued at $95 billion, giving it the status of one of the most valued private fintech companies in the world. In November 2022, Stripe laid off 14% of its staff, or about 1,120 people. But fintech continues to expand. Last June, TechCrunch reported that Stripe had acquired a (non-fintech!) startup and announced an expansion of its credit issuer product.

Klarna

Swedish fintech Klarna confirmed to TechCrunch last November that it was taking steps “towards an eventual IPO.” The company said it had begun a process of restructuring its legal entity to establish a holding company in the United Kingdom “as an important first step” in its plans for an initial public offering, according to a Klarna spokesperson. The move came immediately after a positive third quarter in which Klarna turned a profit and reported 30% more revenue of around $550 million. Creating a new legal entity at the top of the company’s corporate structure would allow it to go public more easily, the spokesperson added. His most recent appraisal was 6.7 billion dollarswhich fell 85% from a Boasted $45.6 billion valuation a year before.

(Photo by Noam Galai/Getty Images for TechCrunch)

Lendbuzz

Lendbuzz, a fintech company that applies artificial intelligence to provide car loans to people who lack credit history, in December “hired investment banks for an initial public offering that could value it at more than $2 billion,” according to Reuters. In June 2021, TechCrunch reported that the car financing platform had raised $300 million in debt financing and $60 million in financing.

Ring

Rumors have been circulating for some time that Chime is eyeing the public markets. Once valued at 25 billion dollarsThe neobank was initially, as TickerNerd reports, “all set for a March 2022 debut at a valuation of between $35 and $45 billion,” but then the markets took a turn. In November 2022, the company had announced that it would lay off 12% of its workforce, or about 160 people. Recent reports set the company’s valuation about 6.7 billion dollarsand it is possible that Chime will decide to take the step this year, considering that it was scheduled for market entry at the end of 2023, according to Investing.com.

Tartan

Last October, TechCrunch reported that paintings had hired former Expedia CFO Eric Hart to serve as its first CFO, typically a crucial step in a private company’s advance into the public markets. Then today, the company announced that it had hired Cloudflare Chief Product Officer Jen Taylor, to serve as its first president. When asked if the move meant the company planned to go public, a spokesperson told TechCrunch: “I can confirm that an eventual IPO is a milestone we are pursuing, but we do not have any details or timeline to share.” Beyond that.” Plaid began as a company that connects consumer bank accounts with financial apps, but has since gradually expanded its offerings to offer a more comprehensive onboarding experience. It was nearly bought by Visa for $5.3 billion before regulators put the brakes on that deal, which some call a blessing in disguise.

Ripple/Taste/Deel

He Human resources technological space It became very fashionable, very quickly and these three companies are among the most popular in the sector. Ripple last March was able to secure $500 million in new financing while the SVB disintegrated. Last June, we discovered that Gusto in its most recent fiscal year (the 12 months ending April 30, 2023) had generated revenues of more than 500 million dollars. In January 2023, Deel revealed that he had reached $295 million in annual recurring revenue (ARR) by the end of 2022. In November, it was reported that that figure had reached 400 million dollars. Interestingly, Rippling has expressed its rivalry with the other two companies. At TechCrunch Disrupt in 2022, CEO Parker Conrad talked about the fact that Rippling was entering Deel territory. Even as early as 2020, Rippling chased Gusto with an advertising poster saying: “Overcoming Taste? Ready, over.

Brex/Ramp/Navan

The expense management space is another crowded space with multiple players clamoring for market share, including Brex, Ramp, Airbase, Navan (formerly TripActions), and Mesh Payments, among others. So far, Navan is the only one who has made it this far confidentially file an initial public offering (IPO) — with a valuation of 12 billion dollars. But that was in September 2022 and we haven’t really heard anything about it since then. Last December, the company laid off 5% of its staff, or 145 people. Brex, what was it valued at $12.3 billion two years ago, has had two rounds of layoffs over the past 18 months and is reportedly working to reduce its cash burn. Ramp raised 300 million dollars with a valuation 28% lower than $5.8 billion last August. So far no staff have been laid off. When asked about the IPO plans, CEO and co-founder Eric Glyman recently told TC that the company was “excited to explore the IPO process eventually, but does not have an active timeline in this regard.”

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