This same time back in 2021 (almost to the day!), we penned a Bottom Line Blog post on the fintech IPO frenzy expected for that year. After a fairly bland past two years in the IPO market, we’re taking a look at some of the fintech names poised to make a splash in 2024.
It’s worth noting that with a potential recession looming, the upward trend of interest rates, and rising rates of unemployment, we may see a similar market as the past few years. However, there are a few companies and sectors that we predict will have a big year in 2024, through IPOs or significant industry growth.
2024 Potential Fintech IPOs
While you can never be too sure of what move a company is going to make and when it is coming in terms of deciding to go public, there are a few sure giveaways that signal a pending IPO. These include moves like hiring a new CFO or other big changes in the senior management team, tightening corporate governance practices, and dropping any non-core operations. Here are a few names on our “Possible 2024 IPO” list:
Stripe, a payments processor and financial solutions platform for businesses, made one of these clear giveaway moves late last year, when they hired a new CFO who had experience leading two other companies through IPOs of their own.
Klarna is a Sweden-based buy now, pay later servicer, a trend that has been on a hot streak this year. While the company itself has performed poorly the past few years, the BNPL market boomed in 2023, and publicly traded competitor Affirm saw skyrocketing stock prices thanks to the renewed interest. This could be just enough motivation to get them to jump into an IPO.
Some have been more straightforward with their intentions, like Plaid, a tech platform that connects bank accounts to fintech apps. The company has not only hired a new CFO, but the CEO came out and stated in an interview at the end of last year that “an IPO is certainly an aspiration of ours”- you can’t get much more direct than that.
Sectors to Watch
In addition to these IPO possibilities, we also have specific technology industry sectors on our radar for potential significant growth this year.
Cybersecurity is expected to become a significant focus and area of growth for companies in all spaces, not just fintech. 2023 was marred with varying types of consumer and enterprise fraud schemes, from AI voice scams targeting a single individual at a time to major breaches of financial institutions that compromised the information of millions. With so much fraud swirling around, companies will need to bulk up on their cybersecurity practices to keep up with the times and ensure that customers feel safe entrusting their data to them.
Following the SEC approval of 11 spot Bitcoin ETFs, cryptocurrency is expected to have a banner year as well. While the response so far has been slow, we expect that interest in the space will grow now that those approvals have gone through, and that the crypto trial of the century, that of FTX’s former leader Sam Bankman-Fried, has wrapped up. This gives the space room to breathe, build, and grow, without the stresses of so much negative chatter. It’s already happening, too, as one of the biggest players in the space, USDC stablecoin issuer Circle, confidentially filed for a proposed IPO last week.
Artificial intelligence. It was one of the most discussed topics across all verticals in 2023, and now that its presence has been made known, AI can make it stick in 2024. We anticipate that companies will start to announce new AI integrations and explain how AI has already been part of their business model for years. This will help to make the technology more of a household name and less of an intimidating presence, and this acceptance will allow AI to grow and scale.
To wrap things up, remember that these predictions are just that- predictions- but we’re excited to see what lies ahead for these companies and sectors throughout 2024.
KCD PR is an innovative fintech marketing and PR agency with experience in industry trends, building awareness through media relationships, and driving trust through its engaging campaigns.