The long weekend cannot arrive soon enough for the FinTech IPO Index. Even though results are mostly in the rearview mirror, the slump continues, despite intermittent headlines in the last several trading days. The index was down 3.5% overall, and the year-to-date fall now exceeds 40%. There were some double-digit % gainers, as well as several double-digit percentage decliners.
Futu Holdings Limited topped the gainers, rising more than 20% in the previous week. The corporation reported “steady growth” in the most recent quarter, which ended June 30.
The firm reported $222.6 million in revenue for the quarter. According to Futu’s release, the total number of users of moomoo and its sister brand Futubull climbed 20.0% year on year to 18.6 million at the end of the third quarter. Year on year, the total number of registered clients climbed by 30.5% to more than three million. According to the release, total customer assets were at $55.3 billion at the end of the second quarter, rising 12.3% year on year.
Enfusion was up almost 7% for the week after SeekingAlpha revealed that private equity companies were interested in acquiring the company.
Blend rose 5.3% after announcing late in the month the introduction of Instant Home Equity, marketed as an automated end-to-end digital home equity product for lenders. According to the company’s press announcement, the digital solution combines income and identity verification, title, decisioning, property assessment, and notarization to achieve remarkable time and cost savings.
Collaborations as well as some stock slides
Billtrust has announced a partnership with Johnstone Supply, a cooperative wholesale distributor in the HVACR sector. According to the statement, the alliance will assist Johnstone’s 90+ individual company owners in taking control of the order-to-cash process. Billtrust’s stock fell 22% this week.
Remitly fell 14.3% throughout the month, continuing its downward trend. In August, the firm announced the signing of a formal deal to purchase Rewire, an Israeli-based financial services network for migrant workers, for $80 million in cash and equity.
As we noted earlier this month, it’s becoming more difficult for would-be suitors in any industry to secure the financing required to fund any deal-making in the first place. Deals worth more than $150 billion have been delayed or canceled as finance becomes tight. To far, the Index’s more than 40 names have lost an average of 46% since their initial public offerings (IPOs).
Even with the current slump, the average market valuation of the FinTech IPO members is over $3 billion, indicating that the financial “hurdle” of acquiring one of these firms is not negligible.
