Technology is making its mark in almost every industry today. A large number of innovative products and services are being offered through these technologies. In the same way, financial technology is also doing its bit to bring changes to the demand and supply of these services. There are companies and financial institutions which make use of the latest technology to raise the bar of their performance in the market. One of the most common examples of financial technology is mobile banking. This technology makes the services faster and easy for consumers. Companies having financial technology are not a new thing, though, but being a company or a business, there are some necessary changes that are required for them to make. Doing this is important to not lose the place in the market, and growth is not hampered.

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One of these changes or solutions to be specific is the transformation of private fintech companies into public companies. There are many companies that have already done it and are playing big in the market, and there are some that are planning to do the same. Here is a list of all the companies in a global market that have carved their own niche among the top fintech IPOs.

Why are Fintech companies going the IPO route?

In order to support their aggressive growth plans, fintech companies require significant amounts of capital. While availing loans of venture capital is always an option, but it comes accompanied with interest rates and regular repayments. In such situations, going public is the most viable option that these companies have. If the IPO is successfully subscribed, the company is able to raise the required sum of money essential for its expansion plans. Moreover, there is no need to serve any EMIs or pay high interest rates against the raised funds. This allows the companies with a certain degree of flexibility with their finances and allows them to aggressively push for their growth plans.

Current scenario and requirements for Fintech companies in the IPO market

Progressing towards an IPO gradually is the aim of many startups and companies to access more benefits and increase the efficiency of retaining its services. The trend is proving to be a successful one for many companies that are capable of delivering a better quality of services for a longer period of time. It is a risky approach for the companies to look for a transformation because the investors are hard to convince. The statutory requirements to file for an IPO are different in various parts of the world.  There are many companies and startups globally that are eagerly moving towards an IPO. But the same is difficult for other companies due to various reasons. The coronavirus pandemic, for instance, has made it difficult for many startups to file for an IPO.

The standpoint of the Investors

In some countries, investors are moving cautiously and not taking the risk of allowing their companies to opt for an IPO. This will remain the situation for a long period of time and only will change in due course. But there is still a chance for startups and companies that have a promising performance currently and in the future. The investors are ready for companies that are managing their finances better than others and have a scope of presenting a sustainable status.

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List of Top Fintech companies eyeing IPOs in 2021

The level of growth in the public listings this year has been high as compared to other times because of the rise in technology stocks. Hence the global market is witnessing more and more companies that are trying to list for IPOs.

The methodology adopted by the investors is pretty strict, and this is making many companies upgrade their plans and processes. Some of these companies are the best in their field and have a long-lasting impression on investors. They stand out in the market and have a growth prospect attached to the brand image.

• Bill.com: – Found in the year 2006, Bill.com is a leading payment software company with its headquarter in California. The company has raised approximately $347 billion since its inception. Bill.com filed its S-1 for the IPO with the SEC in November 2019. Before filing for the IPO, the company had acquired the Unicorn status through its last fundraising round in April 2019.
• Ant Financial IPO: – The $30 billion IPO to be listed (or just listed!) at the HongKong Stock Exchange is going to be the world’s largest IPO. The IPO will be based on a valuation of between $230 to $250 billion. It is expected to be oversubscribed by at least 5-6 times.

• Alipay: – The Alipay IPO is one of the hottest IPOs in the history of Fintech. The IPO filing has been done at a valuation of $230 billion, a big jump over the pre-IPO valuation of $150 billion. The founder Alibaba has 33% stake in the company along with several leading investors. It is going to be the biggest Fintech deal for an app like Alipay super app.

• Snowflake: – It is a leading cloud data warehousing firm which has filed for the biggest IPO for the software industry in 2020. The IPO is expected to easily achieve the target of $40 billion. With Goldman Sachs, Morgan Stanley, and several other leading investments banks as the underwriters, the IPO will surely be a big hit.

These are just a few of the biggest and most anticipated IPOs in the Fintech space in 2020. The next year, i.e. 2021 is expected to be even bigger with several notable startups looking to list.

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