On the fintech side of the equation, the landscape is abuzz with excitement. Now a handful of other companies are looking to replicate Klarna’s success, the Swedish company’s IPO in July at a $17 billion valuation. After this historic development, all eyes turned to an elite group of fintech companies. Stripe, Monzo, Starling, N26, Revolut and Payhawk are likely to join them soon.
Klarna’s IPO marked a significant moment for the fintech sector, with the company’s stock surging as much as 30% on its debut day in New York. This success has made waves for other fintech firms looking to follow in their footsteps and set their sights on public markets. Stripe Inc. recently acquired a reputation as the next best IPO candidate. Certainly, its rapid expansion and huge market capitalization have propelled it to the top of that list.
Most notably, payments processor Stripe, which was valued at an astounding $91.5 billion during a recent secondary share sale. Founders John and Patrick Collison have been under chronic goad to take the company public but have continuously pushed back. There are indications that Stripe is starting to change its tune. Most recently, according to Reuters, the company told employees it plans to go public or let them sell shares within a year.
“Not the thing we’re focused on right now,” said TS Anil, CEO of Stripe, when discussing the prospect of an IPO.
If Stripe is still nervous and gun-shy about moving towards an IPO, many of its fellow fintech companies are making bold moves to do the opposite. Yet Monzo just took a huge hit on its own valuation. It then crashed to $5.9 billion in a secondary share sale, down from its once-lofty valuation of $15 billion. Monzo’s leadership remains committed to ensuring that its global headquarters stays in London. This implementation further solidifies Checkout.com’s standing in the increasingly competitive fintech landscape.
Starling Bank is a historic player in Europe’s growing fintech sector. It was last privately valued at £2.5 billion ($3.4 billion) during a 2022 funding round. Starling is mainly trying to energize its growth in the US market. To do this, the company has brought on industry veteran Jody Bhagat to run its Engine technology division. In an interview with Smart Growth America, Engine CEO Raman Bhatia shared his aspirations to help grow Engine’s global reach.
The IPO window is absolutely opening, echoed Payhawk CEO Hristo Borisov. His Bulgaria-founded fintech company has recently focused its efforts on an initial public offering after achieving a unicorn status in 2022.
Digital bank N26, founded in Germany, was last valued at $9 billion in a late 2021 funding round. With its disruptive product set and fast-growing customer base, N26 is widely believed to be one of the top contenders for an upcoming IPO.
Revolut is considered another near-term future IPO candidate. Revolut’s runaway growth has led to a series of product expansions. Its potential entry into the public sphere has the potential to make big ripples in the fintech ecosystem.
Our fintech sector is just rolling with a ton of momentum. Companies are jumping at the chance, ready to capitalize on this perfect storm of market conditions. Klarna’s successful debut points toward a successful IPO run. Today, more firms than ever are looking to market conditions and determining their own preparedness to join the public markets.
As these companies navigate the complexities of scaling their businesses and preparing for potential IPOs, their strategies will be crucial in determining their future trajectories. These visionary founders and leaders focus on the long-term growth and sustainability rather than minding the IPO timer.
Our energies are on making the business larger and making growth happen. We want to double our customers, customers’ customers and create radical new products that produce record economic outputs ever seen,” shared Stripe’s TS Anil.