FinTech IPOs Mixed as Month Draws to Close

For the FinTech IPO group, some muted gains.

Not enough to mark any significant reversal of fortune, where the Index is down more than 39%.

Or, for that matter, a month that, given the limited trading days next week, is off more than 8%.

But, as for the bounce, though the past week, our FinTech players were up about 2.1%. Those gains came as most names were down slightly, but a few double-digit percentage point gains help boost overall returns of the Index, primarily as platforms and digital banking firms showed some momentum.

Alkami surged 25% through the past several days, rebounding off of earnings results from earlier in the month, when the company said that its cloud-based digital banking business helped generate consolidated revenues that were up 35% year on year. Alkami noted in its results that its digital banking users were up 28% from a year ago, and annual recurring revenues were up 32% to $177 millon.

Platform-Level Announcements

dLocal was up 18% through the week, with recent news the company has debuted dLocal Go, an online platform for entrepreneurs, startups and small and medium-sized businesses (SMBs) to process payments and access other financial services in emerging markets. With this new product, dLocal now accepts more than 700 payment methods in 35 emerging markets.

Read also: dLocal Launches Platform to Help Small Businesses in Emerging Markets

This is not to say that a rising tide lifted all platforms’ boats.

Affirm sank nearly 6% this week, reversing at least some of the bouyancy of the previous week. In company specific news, Affirm has deepened its partnership with open-source commerce solution WooCommerce. Eligible WooCommerce businesses can offer Affirm at checkout more easily, or PayBright in Canada, which is an Affirm company. Customers approved will be able to split their purchase into four installments.

Read more: WooCommerce Expands Partnership With BNPL Firm Affirm

Elsewhere, Paysafe, which gained 3% through the past few days, announced its expanded partnership with the Ontario Lottery and Gaming Corporation — the Ontario government agency that conducts and manages gaming facilities.

MoneyLion was roughly flat as the company said said that it’s gotten a digital banking license from the Ministry of Finance of Malaysia in a consortium with the Japanese financial group AEON Financial Services and its Malaysian subsidiary AEON Credit Service.

The license will give the three companies the ability to build a digital bank to offer services to promote financial inclusion for Malaysian customers.

Read also: Malaysia Grants MoneyLion, AEON Financial a Digital Bank License

As noted by PYMNTS, the effort comes as MoneyLion is trying to roll out its software-as-a-service (SaaS) offering, which will develop tech, data analytics and embedded finance to the consortium.

FinTech IPO Index YTD Performance