Sidelined Fintech Firms Lead IPO Charge To Start 2025 — Here’s Which Ones To Get To Know
After becoming one of the pandemic’s biggest investing themes, facing a generational wipeout, and clawing their way back, fintechs have had enough — and now, they’re looking to have the final say.
To start the year, fintech stocks are wildly outperforming the broader US landscape. And we’re not just talking about individual firms like real estate brokerage Compass, insurance firm EverQuote, and payments processor Stone — which are up 65%, 43%, and 39%, respectively.
The F-Prime Fintech Index, which tracks 46 global players, is up 10.3% so far in 2025. Compare that with the 1.5% decline in the S&P over the same period, and the signal is clear: it’s time to go to market… the stock market.
A generational moment: Fintechs that survived the private market wipeout have their eyes on Wall Street, thanks to the strong start to the year from sector names. A “whole generation” is lining up to go public, per QED Investors’ Nigel Morris. In recent days, companies like Klarna and eToro announced plans to test the markets in the coming weeks. They’re likely to offer a temperature check for others considering plans of their own.
- Last week, Klarna — the British buy now, pay later firm — filed for its IPO after revenues rose 24% last year — it last raised at a $6.7B valuation but might seek a $15B valuation in its spring IPO.
- On Tuesday, eToro filed to go public for a second time — it failed to IPO in a 2021 SPAC deal, valuing it at $10.4B valuation — after a boom in crypto trading activity boosted trading commissions by 45% year-over-year.
What’s On Deck?
2024 was a rebound year for the IPO market. But a few successes could turn 2025 into a blockbuster year, even amid the backdrop of the financial environment. With so many high-profile names on the sideline, the fintech industry could have a lot to be excited about.
- Neobank Chime is set to be among the biggest listings of the year — even more than hyperscaler CoreWeave — as it recently filed a confidential IPO.
- Broker infrastructure giant Apex Fintech Solutions — which also tried but failed to go public in a SPAC — is also being eyed, as it has a draft IPO registration from late 2023.
IPO watch: Stripe, which raised a $91.5B valuation last month, is considered to be one to watch — since its valuation would make it among the largest public offerings of all time. However, analysts expect that we will likely see movement from neobank Revolut and fintech infrastructure company Plaid. If nothing else, there’s always next year — with HR tech firms like Rippling, Gusto, and Deel on the move, as well as spend management firms like Brex, Ramp, and Navan all building momentum behind the scenes.
