FinTech IPO Index Falls as Lending Platforms Bear the Brunt
The Fintech stock index fell 4.9% this week due to a combination of factors, but the market’s malaise affected all of our names over a five-day losing stretch. Doma Holdings fell 22% this week after reporting fourth-quarter revenues of $96 million, down 11% from Q3 2022. Due to the housing market, retained fees dropped 17% to $35 million in Q3 2022. Q3 2022 purchase closed orders fell 26%.
Katapult lost slightly under 20% during the same period, but it’s December quarter gross establishments of $59.8 million climbed by 0.9 million dollars, or 1.5%, the first upward inflexion ever since the 3rd quarter of 2021. The gross originations for December 2022 rose considerably. Revenue fell $24.5 million, or 33.4%, to $48.8 million.
According to the IPO news, Open Lending dropped 1.9%. Crescent Bank and the enterprise will offer auto loans in 32 U.S. states. Nuvei shares rose 21% in five sessions. In the 4th quarter of 2022, overall volume rose 28 percent to 40.3 billion dollars from 31.5 billion dollars, with eCommerce accounting for 91%. With such tailwinds, revenues rose 4 percent to 220.3 million dollars in the latest period. Nuvei reported that digital asset and cryptocurrency revenues fell 58% to $19 million.
Paysafe gained 9% and net profits in recent times. $33.1 billion in payments was up 5%. Constant currency revenues rose 8% to $383.6 million. Digital wallet revenue increased by 7% in regular exchange rates, while the company reported 25.9 payments per active user, up 34% year over year. Nevertheless, up 12 percent for the year, the growing gloom has lowered our weekly index. Nonetheless, the median firm is trading at half its opening bid price.
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