Could 2024 be the year for fintech IPOs? <\/span>Quite possibly, according to F-Prime Capital\u2019s State of Fintech 2024 report<\/a>.<\/span><\/p>\n F-Prime<\/a> \u2014<\/span> a VC firm with over $4.5 billion in assets under management that<\/span>\u00a0tracks the performance of emerging, publicly traded and privately held financial technology companies \u2014 <\/span>naturally remains bullish on the fintech space, noting that: \u201c<\/span>In aggregate, fintech companies have captured <10% of financial services revenue, yet many scaled private fintech companies are generating $1B+ revenue, still growing rapidly, and expected to list in public markets.\u201d<\/span><\/p>\n \u201cMany sizable companies are now filing or considering going public,\u201d says F-Prime.<\/span><\/p>\n 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 arguably, crypto undoubtedly falls under the fintech umbrella. For the purposes of this article, though, we are going to focus on just some of the the non-crypto focused companies that have the potential to go public this year.<\/span><\/p>\n Whether any of these companies actually take the plunge remains to be seen; we have to say we\u2019d be excited for even just one to file that S-1 to give us greater insight as to just how much money these companies are (or are not) really making.<\/span><\/p>\n As reported by Dallas Innovates<\/a> last December, \u201ctwo years after attempting to go public via 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\u2026T<\/span>he stock trade clearance firm filed confidentially with the SEC, saying that \u201cthe total number of shares to be offered and the price range for the proposed offering have not yet been determined.\u201d<\/span><\/p>\n In January of 2023, it was reported that Stripe had <\/span>set a 12-month deadline for itself to go public<\/span><\/a>, either through a direct listing, or to pursue a transaction on the private market, such as a fundraising event and a tender offer.<\/span><\/p>\n Well, it\u2019s been 12 months and we haven\u2019t heard anything about an IPO. But the payments giant did raise more capital last year. Last March, Stripe announced that it had raised over $6.5 billion<\/a> in Series I funding at a $50 billion valuation. It had been previously valued at $95 billion, giving it the status as one of the highest valued privately held fintech companies in the world. In November of 2022, Stripe laid off<\/a> 14% of its staff, or around 1,120 people. But the fintech continues to branch out. Last June, TechCrunch reported<\/a> that Stripe had acquired a (non-fintech!) startup and announced an expansion of its issuing product into credit.<\/span><\/p>\n Swedish fintech Klarna confirmed to TechCrunch last November that it was taking steps \u201ctoward an eventual IPO.\u201d The company said it had initiated a process for a legal entity restructuring to set up a holding company in the United Kingdom \u201cas an important early step\u201d in its plans for an initial public offering, according to a Klarna spokesperson. The move came on the heels of <\/span>a positive third quarter<\/span><\/a> in which Klarna swung to a profit and reported 30% higher revenue of around $550 million. Creating a new legal entity at the top of the company\u2019s corporate structure would enable it to list on a stock exchange more easily, the spokesperson added. Its most recent valuation was <\/span>$6.7 billion<\/span><\/a>, which was down 85% from a <\/span>$45.6 billion valuation it had boasted <\/span><\/a>a year prior.<\/span><\/p>\n (Photo by Noam Galai\/Getty Images for TechCrunch)<\/p>\n<\/div>\n Lendbuzz, a fintech company applying artificial intelligence to provide auto loans to people who lack a credit history, in December \u201c<\/span>hired investment banks for an IPO<\/span><\/a> that could value it at more than $2 billion,\u201d as reported by Reuters. In June of 2021, TechCrunch had reported that the <\/span>auto finance platform had <\/span>raised $300 million in debt financing and $60 million<\/span><\/a> in funding.<\/span><\/p>\n Rumors have swirled for some time that Chime is eyeing the public markets. Once valued <\/span>at $25 billion<\/span><\/a>, the neobank was initially,<\/span> as TickerNerd reports, \u201call set for a March 2022 debut with a valuation between a whopping $35 and $45 billion,\u201d but then the markets turned. By November 2022, the company had announced it was laying off<\/a> 12% of its workforce, or about 160 people. Recent reports peg the company\u2019s valuation <\/span>at closer to $6.7 billion<\/span><\/a>, and it\u2019s possible that Chime could decide to take the plunge this year, considering it was <\/span>slated for a market entry<\/span><\/a> in late 2023, according to Investing.com.\u00a0<\/span><\/p>\n Image Credits:<\/strong> F-Prime Capital<\/p>\n<\/div>\n Last October, TechCrunch reported that <\/span>Plaid had <\/span>hired former Expedia CFO Eric Hart<\/span><\/a> to serve as its first chief financial officer \u2014 usually a crucial step in a private company moving toward the public markets. Then today, the company announced it had snagged Cloudflare\u2019s chief product officer, Jen Taylor, <\/span>to serve as its first president<\/span><\/a>. When asked if the move meant that the company was planning to go public, a spokesperson told TechCrunch: \u201cI can confirm that an eventual IPO is a milestone we\u2019re tracking towards, but we don\u2019t have any details or a timeline to share beyond that.\u201d Plaid got its start as a company that connects consumer bank accounts to financial applications, but has since been gradually expanding its offerings to offer more of a full-stack onboarding experience. It was almost bought by Visa for $5.3 billion before regulators put the brakes on that deal \u2014 which some call a blessing in disguise.<\/span><\/p>\n Image Credits:<\/strong> Ross Marlowe\/TPG for TechCrunch<\/p>\n<\/div>\n The <\/span>HR tech space<\/span><\/a> got really hot, really fast and these three companies are among the hottest in the space. Rippling last March<\/span> was able to <\/span>secure $500 million in fresh funding<\/span><\/a> as SVB was melting down. Last June, we found out that Gusto in its most recent fiscal year (the 12 months ended April 30, 2023) <\/span>had generated revenue of more than $500 million<\/span><\/a>. In January 2023, Deel revealed it had reached $295 million in annual recurring revenue (ARR) by the end of 2022. By November, that number had reportedly <\/span>reached $400 million<\/span><\/a>. Interestingly, Rippling has been vocal about its rivalry with the other two companies. At TechCrunch Disrupt in 2022, CEO Parker Conrad talked about the fact that Rippling was <\/span>entering into Deel\u2019s territory<\/span><\/a>. Even as far back as 2020, Rippling went after Gusto with <\/span>a billboard<\/span><\/a> stating: \u201cOutgrowing Gusto? Presto change-o.\u201d<\/span><\/p>\n The spend management space is another crowded one 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 to go as far as <\/span>filing confidentially for an IPO<\/span><\/a> \u2014\u00a0at a $12 billion valuation.<\/span> But, that was in September of 2022 and we haven\u2019t really heard anything on that front since. Last December, the company <\/span>laid off 5% of its staff,<\/span><\/a> or 145 people.<\/span> Brex, <\/span>which was <\/span>valued at $12.3 billion<\/span><\/a> two years ago,<\/span> has had two rounds of <\/span>layoffs<\/span><\/a> in the past 18 months, and is reportedly working to reduce its cash burn. Ramp <\/span>raised $300 million<\/span><\/a> at a 28% lower valuation of $5.8 billion last August. So far, it has not laid off staff. When asked about IPO plans, CEO and co-founder Eric Glyman recently told TC that <\/span>the company was \u201cexcited to explore the IPO process eventually, but have no active timeline around that.\u201d<\/span><\/p>\n Want more fintech news in your inbox? Sign up for TechCrunch Fintech <\/span><\/i>here<\/span><\/i><\/a>.<\/span><\/i><\/p>\n<\/p><\/div>\nApex<\/h2>\n
Stripe<\/h2>\n
Klarna<\/h2>\n
Lendbuzz<\/h2>\n
Chime<\/h2>\n
![\"\"](\"https:\/\/techcrunch.com\/wp-content\/uploads\/2024\/02\/Screenshot-2024-02-08-at-2.03.04\u202fPM.png\")
<\/p>\nPlaid<\/h2>\n
![\"Plaid](\"https:\/\/techcrunch.com\/wp-content\/uploads\/2023\/09\/53200113510_bb815ce7d9_k.jpg\")
<\/p>\nRippling\/Gusto\/Deel<\/h2>\n
Brex\/Ramp\/Navan<\/h2>\n