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Which fintechs might IPO in 2024?
Market conditions continue to block new listings, but that isn’t stopping some fintechs from getting their houses in order
New entrants however remain few and very far between, with the absolute disaster of former IPO darling CAB Payments in London firmly closing the door on new listings this side of the Atlantic.
Market conditions continue to dampen excitement, but some names continue to come up in any conversation about fintech IPOs.
As with 2023, I’m going to skip having a “most likely to IPO” section, as there really aren’t any dead certain listees for 2024.
Moderately likely to IPO in 2024
As well as picking up a pile of trophies at the AltFi Awards in 2023, Zopa also spent the year getting its house in order seemingly in preparation for a long-rumoured and delayed IPO.
In June the bank appointed a new chief operating officer (COO) and a new chief technology officer (CTO), a move many read as being linked to a potential listing.
COO Kate Erb joining from London-listed Leeds Building Society and CTO Peter Donlon arriving from Moonpig, having been at the gift card giant during its 2021 IPO.
Then in September, the bank raised £75m in a debt funding round which it said left it in a good position to list in the short term if the conditions should be right.
The big ‘IPO hint’ for open banking provider Plaid last year was its appointment of an experienced new chief financial officer from Expedia in October.
That is far from a slam dunk confirmation, but it has put Plaid back in the public market conversation after a quiet few years since it last raised funding in 2021.
Also with a new CFO in 2023 was Stripe, again news which triggered speculation that the fintech was preparing a listing.
However, the global payments and all-things-finance provider also got stung with a $6.5bn downround last March, which still valued the company at $50bn, but was a far cry from the $95bn it achieved in 2021.
2023 was a big year for Klarna as it swung back into profitability, mentioned an “IPO” multiple times, and did some corporate structure work with a UK holding company in preparation for an eventual listing.
CEO Sebastian Siemiatkowski specifically called out market conditions as being the only blocker from Klarna now going public.
After reportedly putting its planned $40bn+ IPO on hold in May 2022, the mood music around US neobank Chime Financial started to grow louder towards the end of 2023.
Having already brought on bankers to get the fintech IPO-ready, similar to Klarna it’s likely just a case of waiting for market conditions to improve.
Unlikely to IPO in 2024
Revolut finds itself at the start of 2024 having actually published its overdue 2022 financial results, a significant improvement on the previous year.
However, the fintech’s UK banking licence is still notably absent, which will raise difficult questions from any public market investor.
Until Revolut gets this sorted, I won’t bank on an IPO any time soon.
As each year goes by, Atom Bank’s public statements about a “liquidity event” seem to grow even more vague.
In November as the bank raised £100m in equity funding from its existing investors, its IPO language was dialled down once more to just being part of the bank’s “long-term strategy” and something that would happen “in the future.”
Starling Bank and Monzo
Neither Starling Bank nor Monzo has made any particular signal that an IPO is imminent, indeed Starling still needs to find a permanent CEO, but both are viewed as being public market contenders.
Just probably not this year.
Checkout.com and Zepz
The two former IPO hopefuls suffered difficult 2023s in different ways, Checkout.com after slashing its internal valuation at the tail end of 2022 and Zepz cutting its headcount in the wake of its 2022 accounting scandal.
So there you have it, the most and least likely IPO candidates for 2024. Did we miss anyone? Let me know