4 charts

2021 US fintech IPO review in 4 charts: Most stocks are starting the year in the red

  • Most public fintechs that IPOed in 2021 have their share prices down well in the double digits compared to their initial market offering.
  • Investors were betting big on fintech startups, but this confidence seems to be dying out.
close

Email a Friend

2021 US fintech IPO review in 4 charts: Most stocks are starting the year in the red

Last year was a busy year for the US fintech industry, which welcomed 15 new companies on the public markets. Investors were betting big on fintech startups, but this confidence seems to be dying out. Looking at stock performances since the public offerings, it looks like investors are yet to be fully convinced of their worth. 

Most public fintechs that IPOed in 2021 are starting the year in the red, with share prices down well in the double digits compared to their initial market offering. 

For example, MoneyLion, Remitly and Blend have shedded almost two-thirds of their initial valuation as their respective stocks dropped more than 60%. MoneyLion and Remitly both IPOed at the end of September, and are currently at the bottom of the barrel in our list. 

Blend, a mortgage fintech, debuted on the public markets mid-July and raised $360 million in its IPO, earning a valuation of $4 billion. Its market capitalization now stands at around $1.6 billion.

At Robinhood, shares were listed at $38 but fell by 10% on the first day of trading as its Q3 earnings results were below expectations. Investors seem to be skeptical about the long-term performance of the company, as its stock is now trading nearly 60% below IPO at $15.9. 

US payments firm AvidXchange was seeking a valuation of nearly $5 billion, listing its shares at $25 a pop, but it’s now trading at $13.2 as of January 7 – a nearly 50% decrease. 

Marqeta debuted with $27 a share, setting its valuation at over $15 billion when it launched its IPO on June l9 ast year. Its stock closed at $15.6 last week, a 42% drop since the public offering.

Crypto marketplace Coinbase offered its shares to the public on April 4, trading at $381 apiece at market open. The share price closed at $328, taking the company’s valuation to around $85 billion. Since then, the company witnessed a $35 billion valuation drop, with its market cap currently standing at around $50 billion.

Meanwhile, financial technology company SoFi gained in its first trading day on June 1, following its merger with Social Capital Hedosophia Holdings Corp. V, a special-purpose acquisition company (SPAC). The deal gave SoFi an equity value of $8.7 billion. Half a year later, its shares are down more than 30%.

Toast, a software company that focuses on bringing financial technology to the restaurant industry, also lost about a third of its initial $20 billion valuation which placed its shares at $40, only to drop to $28 as of last Friday. 

And NerdWallet, a financial education fintech, went public in November at $18 a share, but has fallen nearly 20% since, cutting its valuation to just under $1 billion.  

Turning to the minority of fintechs that actually saw their share price grow since their public market debut, the strongest performances were at Affirm and DLocal. 

Affirm was the first company on our list to hit the public markets, announcing its IPO around this time last year at $49 a share to raise $1.2 billion. It has since recorded a 63% increase to close at nearly $80 at the end of last week, taking its market cap to over $22 billion. 

Payments fintech DLocal raised nearly $620 million in its June IPO, and its share price has risen nearly 50% to $31.1 last Friday. 

At Expensify, a fintech that simplifies expense reporting, investors showed a big vote of confidence as the stock surged 50% from $27 to nearly $40 on the November 9 IPO, as the company raised $70.2 million. It has decreased since, now trading at $32.3, but that’s still a 20% gain relative to the IPO value. 

And last but not least, Wise is up 15% since its IPO. Its market cap stood at around $5 billion before the flotation, and grew to just over $9 billion as of last Friday.

0 comments on “2021 US fintech IPO review in 4 charts: Most stocks are starting the year in the red”

4 charts

4 charts on obstacles getting in the way of banks’ digital transformation efforts

  • With consumers’ relationships with their banks constantly changing, banks need to have a solid digital transformation plan to keep up with these shifts.
  • Banks are putting in the hours, but obstacles still abound.
Rivka Abramson | June 09, 2022
4 charts

The revenue potential of banking-as-a-service, in 4 charts

  • Many banks are undergoing digital transformation, but struggle to monetize their new infrastructure.
  • One of the ways banks could leverage their new digital payments infrastructure is through adopting a banking-as-a-service strategy, which can unlock new revenue streams.
Iulia Ciutina | May 04, 2022
4 charts

The evolution of lending towards a digital ecosystem, in 4 charts

  • In a new report, Marqeta outlined how the lending industry has evolved, and defined a new stage as Lending 3.0 - all about digital interaction, alternative data, and personalized underwriting.
  • The study highlighted changes brought about by this new digital lending ecosystem and how financial services providers are evolving with it.
Iulia Ciutina | April 22, 2022
4 charts

How non-prime risks are driving the growth in consumer credit, in 4 charts

  • The consumer credit market is showing more signs of healthy expansion, with record numbers of originations for credit cards and personal loans in Q3 2021.
  • This has been partly driven by subprime segments, as lenders have become more comfortable serving this category due to record low delinquency rates.
Iulia Ciutina | February 23, 2022
4 charts

Where community banks stand in terms of tech and trust, in 4 charts

  • Community banks are still valuable in consumers’ minds.
  • Still, if these institutions want to stay relevant, they’re going to have to do some tech makeovers.
Rivka Abramson | February 16, 2022
More Articles