Banking Briefing: Sinking public neobanks
- The market hasn't been kind to newly-minted public neobanks.
- Firms like Dave are experiencing a sinking share price as investors say 'meh' on their prospects and valuations.
Investors aren’t impressed with the new class of fintech firms hitting public markets. Challenger bank Dave is the latest to go public — it floated its shared via a merger with a SPAC last Thursday. The market originally valued the firm, which saw success with early wage access and credit building, at $3 billion. Shares were down 32% a day after the firm hit public markets.
Dave’s sagging stock isn’t alone in terms of public fintech firms exploring public markets. Firms like eToro (valuation cut 15% on its upcoming SPAC) and MoneyLion (down 17% last week) aren’t seeing much success as public entities, even if their businesses are performing relatively well.
Getting back to Dave, the company says it expects to hit about $200 million in revenue this year, about 60% more than last year.
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