Swedish fintech company Klarna is one highly anticipated name, especially since its buy-now, pay-later rival Affirm Holdings Inc. The year ahead could bring “five or six massive ‘decacorn'” IPOs in the fintech space, said Martin, acknowledging that Stripe’s would actually be a “centicorn” deal given that the company is hovering around a $100 billion valuation. Stripe isn’t the only hot fintech among rumored IPO candidates. Still, he expects the company will hit the IPO market in 2022. “The company is so tightly controlled by the founders, and there’s some sense that they never need to go public,” he said, given that Stripe has been able to offer liquidity for investors and raise new capital easily. Martin, a shareholder of Stripe, is more upbeat about the chances. He would be “surprised” to see Stripe turn public in the year ahead. Given the company’s secrecy about potential IPO ambitions, it seems that Stripe executives are content operating the business as a private company, Kulkarni said. IPO watchers are split on whether Stripe will make its debut.
Will 2022 finally be the year that the fintech giant takes the plunge? The company provides payment-processing technology, invoicing tools, and business financing, among other features.īut with a private-market valuation of nearly $100 billion, Stripe continues to test the boundaries of how long a hot technology company can avoid the public markets. The year of Stripe?ĪWS cloud-computing business except for payments infrastructure, Stripe helps power many hot tech companies, including Lyft Inc. “We don’t have anything to say at this time,” a Discord spokesperson said in response to MarketWatch’s inquiry about potential IPO plans. Reddit may not be the only social platform to test the public markets in 2022, with Martin noting that he’s seen strong secondary-market demand for Discord on his platform, suggesting that the company is one to “keep an eye on” in the year to come.
The company reportedly is on track to generate $350 million in revenue this year, according to The Information, at least double its 2020 total. By going public, Reddit could find more of a spotlight on its practices and policies. have faced over their roles in the spread of misinformation online.
“The valuation may have gotten a bit ahead.”Īn Instacart spokesperson declined to comment about the company’s IPO ambitions.Īs a private company, Reddit has avoided some of the scrutiny that fellow social-media companies Twitter Inc.Īnd Facebook-parent Meta Platforms Inc. “It’s hard to replicate what they did in 2020,” said Martin, whose platform Rainmaker Securities allows for the trading of pre-IPO shares in private companies. One key question is whether the company can live up to that valuation in an IPO that takes place during something more closely resembling post-pandemic times. The company was last valued at $39 billion in a March 2021 private funding round. New CEOs typically need nine months to a year leading their companies before they can launch into an IPO, according to MKM Partners analyst Rohit Kulkarni, and Instacart in particular may also need a few more quarters “to go through all these reopening headwinds.”ĭon’t miss: There were 1,000 IPOs in 2021 for the first time, but there may be some problems under the hood Veteran, has been at the helm since the summer, and Instacart could be inching closer to a debut, potentially in the second half of 2022. Which went public in December 2020, Instacart has held off on an IPO, instead going through some management changes and working on new growth initiatives. But unlike fellow gig-economy player DoorDash Inc. Instacart had its moment at the height of the pandemic, as lockdowns drove more people to try out grocery delivery. Here’s what to watch for among tech and fintech IPOs, and beyond, in the year ahead. And following what Rainmaker Securities managing director Greg Martin called a “banner year for fintech” deals, more attention will be focused on Stripe, which notched a $95 billion private-market valuation this year but has thus far resisted the public markets. Among the most highly anticipated candidates within the tech sphere are social-networking platform Reddit, grocery-delivery service Instacart, and data-analytics company Databricks.
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