The FinTech IPO Index surged by 3.8% this past week, driven by impressive gains from Lemonade and Affirm, which soared by 58.5% and 23.6%, respectively.
A broad-based rally in the stock market on Thursday, fueled by tech giants like Nvidia, added momentum to the fintech sector.
Lemonade’s Earnings Boost Stock Prices
Lemonade’s recent stock performance extended a rally that began two weeks ago following its strong third-quarter earnings report. The insurance company’s in-force premiums rose by 24% year-on-year, reaching $889 million, while revenues climbed 19%. The number of customers increased by 17% to 2.3 million, and premiums per customer hit $384, up 6% year-on-year. At its investor day, Lemonade highlighted a threefold increase in gross profit over the past two years.
Affirm Expands Priceline Partnership
Affirm’s partnership with online travel company Priceline expanded, making Affirm the buy now, pay later (BNPL) provider for Priceline Partner Solutions, Priceline’s B2B business. This partnership allows Priceline partner brands, including hotels, airlines, and car rental services, to offer travelers flexible payment options. Customers can now schedule trips and pay over time through their own websites, integrating Affirm seamlessly into their checkout processes for orders of at least $50.
Futu Holdings Shows Strong Client Growth
Futu Holdings’ third-quarter results revealed significant growth, with the total number of paying clients rising by 33.1% year-on-year to 2.2 million. Registered clients increased by 22.8% to 4.3 million, and client assets surged by 48.1% to HK$693.4 billion. Despite these positive figures, Futu’s shares dipped by 4.5% over the past week.
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OneConnect Faces Revenue Decline
OneConnect’s third-quarter results showed a revenue decline, with revenue from continuing operations at RMB417 million, a 48.3% drop year-on-year. Implementation revenue also decreased by 4.7% to RMB167 million. Shares fell by 2.9% over the week.
Upstart Supports Short-Term Financial Needs
Upstart’s shares rose by 6%, bolstered by DR Bank’s use of Upstart’s small-dollar loan product to assist customers with short-term financial needs. These small relief loans range from $250 to $2,500 and are available for terms between three to 18 months.
dLocal’s Strong Performance in Argentina and Egypt
dLocal reported robust third-quarter earnings, with total payments volume reaching $6.5 billion, a 41% year-on-year increase. Revenues climbed to $185.8 million, up 13% year-on-year. Strong performance in Argentina and Egypt contributed to a 5.3% rise in dLocal’s shares.
Nuvei Goes Private
Nuvei completed its go-private transaction, resulting in the delisting of its shares from the Nasdaq Global Select Market. Nuvei is now a wholly-owned subsidiary, with Advent, CEO Philip Fayer, Novacap, and Caisse de dépôt et placement du Québec holding significant stakes.
Nu Holdings Adds Millions of Customers
Despite adding 5.2 million customers in the third quarter, Nu Holdings’ shares fell by 11%. The company now has a total of 109.7 million customers, a 23% year-on-year increase. Average revenues per active customer were up 25% on an FX-neutral basis, with overall revenues rising by 56% year-on-year to $2.9 billion. In Brazil, the end customer base reached 98.8 million in September, with an average monthly gain of 1.1 million customers.
