Fintechs to the rescue.
That’s one way of describing the sudden burst of activity in the IPO market. Within the span of a few hours on Tuesday, eToro priced its IPO above its initial range and Chime filed an S-1, setting the stage for its own listing.
Chime, a digital banking startup founded in 2012, revealed that its revenue for fiscal year 2024 was $1.67 billion, up from $1.28 billion a year prior. The company’s net loss of $25 million is down substantially from $203 million in 2023, and $470 million in 2022.
Whatever label you choose, it seems that this crop of fintech darlings, weathered by the post-ZIRP (zero-interest-rate policy) era, are prepared to step forward as public companies. eToro, a Robinhood competitor founded in 2007 and based in Israel, begins trading on the Nasdaq today under the symbol ETOR. The company priced its IPO Tuesday at $52 a share, giving it a $4.2 billion valuation.
So, what’s going on? Are fintechs the brave vanguard of the long-awaited IPO boom?
And that’s the crux of the issue: Going public in a volatile market still jittery with tariffs is tough. Nevertheless, we just might be headed toward a fintech summer.
These long-simmering, scaled fintechs—battle-tested by COVID, rising interest rates, and regulatory headwinds—may finally be getting their moment in the sun.
See you tomorrow,
